As a Firm Increases Its Use of Labor Relative to Capital

question 77

Multiple Choice

As a firm increases its use of labor relative to capital, it is becoming more:

• A) capital intensive.
• B) labor intensive.
• C) efficient.
• D) cost conscious.

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Definitions:

Test Statistic

A number derived from the sample data in a hypothesis test that helps decide whether the null hypothesis should be rejected.

Alternative

The hypothesis that there is a significant difference between specified populations or sets of data, contrasting the null hypothesis.

Population Proportion

The fraction or percentage of the population that possesses a particular characteristic or attribute.

Sample Size

The number of individuals or observations included in a sample taken from a population.