ECONOMICS
MARKET FAILURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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change jobs.
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accept lower wages.
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improve productivity.
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attend training courses.
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Detailed explanation-1: -People often experience occupational immobility. For example, workers made redundant in the steel industry or in heavy engineering may find it difficult to find a new job.
Detailed explanation-2: -Factor mobility refers to the ability to move factors of production-labor, capital, or land-out of one production process into another. Factor mobility may involve the movement of factors between firms within an industry, as when one steel plant closes but sells its production equipment to another steel firm.
Detailed explanation-3: -Factor immobility occurs when it is difficult for factors of production (e.g. labour and capital) to move between different areas of the economy. Factor immobility could involve: Geographical immobility – When it is difficult to move from one geographical area to another.