In the Following Diagram Showing the Relationship Between the Price

question 9

Multiple Choice

In the following diagram showing the relationship between the price of good X relative to the price of good (P_X/P_Y) and the wage rate relative to the return to capital or rental rate on capital (w/r) ,

good X is the relatively __________ good at (w/r) values less than (w/r) , and good X is __________ good at (w/r) values greater than (w/r) . [Note: The (P_X/P_Y) associated with (w/r) is the highest (P_X/P_Y) on the graph.]

• A) labor-intensive; also the relatively labor-intensive
• B) labor-intensive; the relatively capital-intensive
• C) capital-intensive; the relatively labor-intensive
• D) capital-intensive; also the relatively capital-intensive

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Definitions:

"Face" Cards

In a deck of playing cards, the king, queen, and jack of each suit, which have pictures of faces on them.

Standard Deck

A set of 52 playing cards divided into four suits: hearts, diamonds, clubs, and spades, each containing 13 ranks from Ace through King.

Suit

A set of garments made from the same cloth, usually consisting of at least a jacket and trousers, worn traditionally by men.

Shoe Sizes

A numerical indication of the fitting size of a shoe for a person.