When Will the Scale Effect of a Wage Increase Cause

question 24

Multiple Choice

When will the scale effect of a wage increase cause a fall in the amount of labor employed?

• A) Always.
• B) When labor is not a regressive factor.
• C) When labor and capital are substitutes in production.
• D) When labor and capital are complements in production.

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Definitions:

Unauthorized Means

Activities or methods used without proper authorization or permission, often in a context of accessing or obtaining information.

Acceptance

in contract law, signifies the agreement of the offeree to the terms of the offer, resulting in a legally binding contract.

Offeror

The person or entity that presents a proposal or bid in a contract negotiation, awaiting acceptance or rejection by the offeree.

Objective Standard

A legal principle that evaluates the actions of individuals based on what a reasonable person would do under similar circumstances.