The Input-Substitution Effect Decreases the Labor Input Per Unit of Output

question 144

Multiple Choice

The input-substitution effect decreases the labor input per unit of output while the output effect

• A) decreases the price of the output.
• B) decreases the total output.
• C) increases the price of the output.
• D) increases the total output.

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Definitions:

Antitrust Policy

Legislative and regulatory efforts undertaken by the government to prevent oligopolistic industries from becoming or behaving like monopolies.

Monopoly Power

The ability of a business to control market prices and total market output due to the lack of competition.

Federal Government

The national level of government organization, having authority over broader issues that cross state lines, such as defense, foreign policy, and monetary policy.

Department of Justice

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.