A Business That Requires a Greater Expenditure for Equipment Than

question 19

Multiple Choice

A business that requires a greater expenditure for equipment than for labor is called:

• A) capital intensive.
• B) labor intensive.
• C) market intensive.
• D) production intensive.

---

Definitions:

Diminishing

A principle that refers to a decrease or reduction in the effectiveness, value, or quantity of something over time or under certain conditions.

Additional Unit

An incremental quantity of a product or service, typically considered in the context of production or consumption.

Substitution Effect

The change in the quantity demanded of a good that results from a change in price, making the good more or less expensive relative to other goods.

Income Effect

The alteration in the consumption habits of a person or an economy due to a variation in actual income.