If a Technological Change Makes It Harder to Substitute Capital

question 47

Multiple Choice

If a technological change makes it harder to substitute capital for labour, the demand curve for labour

• A) becomes more elastic.
• B) shifts parallel to the left.
• C) is not affected.
• D) becomes less elastic.
• E) shifts parallel to the right.

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Definitions:

Cumulative Voting

A procedure for voting for a corporation’s directors that permits a shareholder to multiply the number of shares he or she owns by the number of directors to be elected and to cast the resulting total of votes for one or more directors. See also straight voting.

Dodd-Frank Wall Street Reform And Consumer Protection Act

A comprehensive piece of financial reform legislation passed in 2010 aimed at reducing risks in the American financial system, with a focus on consumer protection.

Inherent Authority

The power or authority possessed by an official body or official inherently through their position or role, not through external sources or assignments.

Proxy

A person who is authorized to vote the shares of another person. Also, the written authorization empowering a person to vote the shares of another person.