If Labor and Capital Are Substitutes in Production,then an Increase

question 17

Multiple Choice

If labor and capital are substitutes in production,then an increase in the amount of capital will

• A) reduce the total product associated with each quantity of labor.
• B) decrease the marginal product of labor.
• C) increase the marginal product of labor.
• D) have no effect on labor productivity.

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Definitions:

Precognition

The claimed power to predict or be aware of future occurrences before they actually occur.

Clairvoyance

The supposed ability to gain information about an object, person, location, or event through psychic means, not through the known senses.

Telepathy

The supposed communication of thoughts or ideas without using the known senses or physical interaction, often considered a paranormal phenomenon.

Psychokinesis

The purported ability to move or manipulate objects with the mind without any physical interaction.