Factor Immobility

Question 1

Factor Immobility

Answer 1

This places barriers to the movement of factor inputs to their most productive use.

Question 2

Consequences of Factor Immobility

Answer 2

1. Higher costs for businesses
2. Higher prices for consumers
3. A loss of potential output

Question 3

The two types of Factor Immobility

Answer 3

Geographical Immobility

Occupational Immobility

Question 4

Geographical Immobility

Answer 4

There are barriers to people moving from one area to another to find work.

Question 5

Occupational Immobility

Answer 5

There are barriers to the mobility of factor of production between different sectors of the economy.