If Capital Cannot Easily Be Substituted for Labor, Then the Elasticity

question 12

Multiple Choice

If capital cannot easily be substituted for labor, then the elasticity of substitution is:

• A)negative.
• B)close to zero.
• C)close to one.
• D)approaching infinity.

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Definitions:

Property

Physical or intangible assets owned by an individual or business, including land, buildings, and intellectual property.

Residential Rental Property

Real estate property that is used for housing tenants and includes houses, apartments, and townhouses.

Nonresidential Real Property

Property used for business purposes, excluding those properties used for living accommodations.