Which of the following is an example of factor mobility in the context of factors of production?

• A. A worker moving from agriculture to manufacturing
• B. A consumer switching from buying apples to oranges
• C. A firm increasing its advertising budget
• D. A government setting minimum wage laws

Answer: (A)

Verified step by step guidance

1. Understand the concept of factor mobility: Factor mobility refers to the ease with which factors of production (such as labor, capital, land) can move from one use or sector to another in response to changes in the economy.
2. Identify the factors of production involved in the options: labor (workers), capital (machines, money), land (natural resources), and entrepreneurship.
3. Analyze each option to see if it involves the movement or reallocation of a factor of production between sectors or uses.
4. Recognize that a worker moving from agriculture to manufacturing represents labor shifting between sectors, which is a clear example of factor mobility.
5. Note that the other options involve consumer choices, firm spending decisions, or government policies, which do not directly illustrate the movement of factors of production.