A Firm Practices Input Substitution When It

question 81

Multiple Choice

A firm practices input substitution when it

• A)retrains Joe the welder as a painter and Pat the painter as a welder.
• B)buys extra machines for its workers to use.
• C)allows fixed cost to become variable.
• D)replaces unskilled labor with automated machinery.

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Definitions:

Income Earners

Individuals or entities that receive compensation for providing goods or services, or through investments.

Annual Family Income

The total amount of money earned by members of a family in one year, including wages, salaries, benefits, and other income sources.

Income Distribution

The way in which a nation’s total GDP is spread amongst its population, affecting the economic equality or disparity in a society.

Equitable Distribution

A principle aiming for a fair allocation of resources and wealth across society. It doesn't necessarily mean equal distribution but focuses on ensuring individuals have fair access to resources and opportunities.