If Two Factors of Production Are Substitutes in Production,then a Decrease

question 34

Multiple Choice

If two factors of production are substitutes in production,then a decrease in plant size will make the total product curve

• A) higher and steeper.
• B) lower and steeper.
• C) higher and more shallow.
• D) lower and more shallow.

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Definitions:

Consumer Confidence

A statistical measure that reflects the overall economic health as perceived by consumers, based on their spending and saving habits.

Stock Market

A public marketplace for buying and selling shares of publicly held companies, reflecting the investment climate and economic health.

Housing Construction

The process of building residential structures such as houses, apartments, and townhomes.

Mercantilism

The incorrect theory that a nation’s economic objective should be to accumulate precious metals in the public treasury; this theory prompted trade barriers to cut imports, but other countries retaliated, reducing trade and the gains from specialization.