Suppose the Price of Capital and Labour Remain Constant but That

question 128

Multiple Choice

Suppose the price of capital and labour remain constant but that the average educational level of workers has increased and therefore, productivity of labour increases.This would lead a firm

• A)to adopt a more capital-intensive production technology.
• B)to adopt a more labour-intensive technology.
• C)to keep its output and production technology unchanged, but to use fewer units of labour.
• D)to use only labour to produce the product.

---

Definitions:

Nonfat Yogurt

A type of yogurt made without the fat content, often used as a healthier alternative in diets.

Nonmodifiable Risk Factor

refers to a risk factor for a disease or condition that cannot be changed or altered by the individual, such as age or genetic makeup.

Lung Disease

A broad term for various pathological conditions affecting the lungs, leading to reduced lung function or respiratory failure.

Asbestos Exposure

Contact with asbestos fibers, often leading to serious health risks including lung diseases and cancers, typically occurring in workplaces or buildings with asbestos-containing materials.