The Input-Substitution Effect Associated with an Increase in the Wage

question 195

True/False

The input-substitution effect associated with an increase in the wage implies that as the wage increases, a firm will substitute other inputs for the relatively expensive labor.

---

Definitions:

Progression Principle

A concept in fitness and training that emphasizes the need for increasing the intensity and workload over time to achieve continued improvement.

Activated

Made active or operational; refers to initiating processes or mechanisms.

Motivate Behaviour

The process of encouraging actions or conduct towards achieving specific goals through incentives or psychological methods.

Physiological Needs

Fundamental necessities critical for the continuation of human life, including breathing, hydration, nourishment, housing, and rest.