If an Earthquake Destroys Some of the Capital Stock, the Neoclassical

question 59

Multiple Choice

If an earthquake destroys some of the capital stock, the neoclassical theory of distribution predicts:

• A) the real wage will rise and the real rental price of capital will fall.
• B) both the real wage and the real rental price of capital will fall.
• C) both the real wage and the real rental price of capital will rise.
• D) the real wage will fall and the real rental price of capital will rise.

---

Definitions:

Management

The process of directing and controlling resources and activities to achieve specific goals.

Educational Software

Computer applications designed specifically to assist with teaching and learning. They include a wide range of academic subjects and skills.

Unlimited Liability

A legal condition where a business owner or partner can be held personally responsible for the debts and obligations of the business without any limit.

Limited Partner

An investor in a partnership who is not involved in the day-to-day operations and whose liability is restricted to the amount of their investment.