An Increase in the Wage Rate Will Have a Greater

question 22

Multiple Choice

An increase in the wage rate will have a greater effect on average costs

• A) the larger the proportion labour costs are of total costs and the easier it is to substitute capital for labour.
• B) the larger the proportion labour costs are of total costs and the harder it is to substitute capital for labour.
• C) the greater the diminishing marginal product of labour is.
• D) the greater returns to scale are.

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Definitions:

Power Consumption

The amount of energy consumed by electronic devices or systems over a given period of time.

Type II Error

A statistical error that occurs when a false null hypothesis is not rejected, meaning a real effect or difference was failed to be detected.

Sample Size

The number of observations or data points collected in a sample from a population, used for statistical analysis.

Power of Test

Refers to the probability that the test correctly rejects the null hypothesis when the alternative hypothesis is true.