If a Firm Increases the Ratio of Capital to Labor

question 128

Multiple Choice

If a firm increases the ratio of capital to labor, it becomes more:

• A) labor intensive.
• B) output intensive.
• C) capital intensive.
• D) cost intensive.

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Definitions:

Appropriation of Funds

The legislative process by which governments allocate funds to various departments, agencies, and programs within the government's budget.

Bank of the United States

A historically significant financial institution in the United States, established in 1791 and 1816 in two iterations, intended to serve as a repository for federal funds and as the government's fiscal agent.

Article I, Section 8

A section of the United States Constitution that outlines the enumerated powers of Congress, including the authority to tax, regulate interstate commerce, and maintain armed forces.

Necessary and Proper

A clause in the U.S. Constitution granting Congress the power to pass all laws deemed necessary and proper for carrying out its enumerated powers.