An Increase in the Wage Rate Will Have a Greater

question 3

Multiple Choice

An increase in the wage rate will have a greater effect on average costs

• A) The larger the proportion labour costs are of total costs and the easier it is to substitute capital for labour.
• B) The larger the proportion labour costs are of total costs and the harder it is to substitute capital for labour.
• C) The greater is the diminishing marginal product of labour.
• D) The greater are returns to scale.

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Definitions:

Qualitative Methods

Research approaches that focus on understanding aspects of human behavior and the reasons that govern such behavior through observational and interpretational techniques.

Needs Assessment

A systematic process for determining and addressing needs, or gaps between current conditions and desired conditions.

Focus Groups

A research method involving guided discussions with a group of people to gather their opinions on a specific subject.

Normative Needs

Needs that are considered standard or expected within a given cultural or societal context.