A change in the supply of one factor of production
A)can alter the earnings of all of the other factors.
B)alters the earnings of capital and labor but not land.
C)will not change the marginal productivities of other factors but may change their prices.
D)alters the earnings of that factor only.

Question

Quizplus · Accepted Answer

A change in the supply of one factor of production can indeed alter the earnings of all other factors. This is because the factors of production are often interrelated; a change in the supply of one can affect the demand and productivity of others, thereby influencing their earnings.

A Change in the Supply of One Factor of Production