Final answer:
Option (b), The cause of damage, malfunction, or delay is referred to as 'Defective'. This term is used in various contexts such as economics where factory damage increases production costs and in biology where a mutation causes new traits.
Step-by-step explanation:
The term that refers to the cause of damage, malfunction, or delay is b. Defective. The examples provided indicate various scenarios where damage or a change in conditions leads to certain effects. For instance, factory damage leads to an inability to supply as much as before, which is effectively an increase in the production cost.
This economic principle is depicted by the supply curve shifting to the left. Similarly, a mutation causing a new trait to develop, or a car being tested on different roads for damage, are instances where a primary cause leads to subsequent changes or outcomes.