If the Price of Capital Rises,in the Long Run the Demand

question 105

Multiple Choice

If the price of capital rises,in the long run the demand for labor

• A) definitely increases.
• B) definitely decreases.
• C) definitely is unaffected.
• D) could increase or decrease, depending on the change in the scale of production.
• E) changes only if the supply of labor changes.

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Definitions:

Internet Access

Internet access denotes the ability of individuals or organizations to connect to the internet using computers, smartphones, or other devices.

Moral Hazard

The risk that a party insulated from risk may behave differently than if they were fully exposed to the risk.

Adverse Selection

A situation where asymmetric information results in high-risk individuals being more likely to participate in an agreement or purchase, negatively affecting the seller or insurer.

Salaried Salesman

A salesperson who is compensated with a fixed salary rather than or in addition to commissions.