If the Price of Capital Declines, the Consequent Output Effect

question 164

Multiple Choice

If the price of capital declines, the consequent output effect would be

• A)greater, the more elastic the demand for the product.
• B)greater, the less elastic the demand for the product.
• C)negative.
• D)of consequence only if capital and labor are used in fixed proportions.

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Definitions:

Stanford-Binet Test

A standardized test measuring intelligence and cognitive abilities in both children and adults.

Average Intelligence

Generally refers to a score on a standard intelligence test that falls within the middle range of the population, usually defined by a standard deviation from the mean IQ score.

Heuristics

are simple, efficient rules or methods used to make decisions or solve problems quickly when exhaustive processing is impractical.

Trial And Error

A fundamental method of problem solving that involves testing various solutions until finding one that works.