If small changes in incentives can induce a factor to shift between alternative uses, we say that the factor is
A) flighty.
B) efficient.
C) inelastic.
D) declining.
E) mobile.

Question

Quizplus · Accepted Answer

The term "mobile" refers to a factor's ability to shift between alternative uses based on small changes in incentives. Factors that are mobile are able to respond quickly to changes in the market and adjust their usage accordingly.

If Small Changes in Incentives Can Induce a Factor to Shift