A problem with measuring the factor shares to determine scarcity or abundance is that:
A) it is very hard to count workers in some nations.
B) estimates are very unreliable.
C) the quantity of a factor may not be as important as its productivity.
D) scientists disagree over the method by which to compute "share."

Question

Quizplus · Accepted Answer

The quantity of a factor may not be as important as its productivity. For example, there may be an abundance of low-skilled labor available in a country, but if their productivity is low, then their factor share may still be high due to the demand for their services. Therefore, measuring factor shares alone may not accurately determine scarcity or abundance.

A Problem with Measuring the Factor Shares to Determine Scarcity