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If the Price of Labor Increases Relative to the Price

question 302

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If the price of labor increases relative to the price of capital, and as a result the quantity of capital hired increases, the output effect of the price increase is greater than the substitution effect.


Definitions:

Prothrombinase

An enzyme complex involved in the blood coagulation process that catalyzes the conversion of prothrombin to thrombin.

Fibrinogen

A blood plasma protein that's converted into fibrin in the blood clotting process, playing a critical role in wound healing.

Fibrin

A protein involved in blood clotting, formed from fibrinogen by the action of the enzyme thrombin.

Factor XII

A protein that plays a role in the initiation of the coagulation cascade to form blood clots, also known as Hageman factor.

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