If Unskilled Labor and Capital Are Substitutes

question 27

Multiple Choice

If unskilled labor and capital are substitutes,

• A)demand for unskilled labor increases when the price of capital decreases.
• B)the cross-elasticity between unskilled labor and capital is positive.
• C)the price of unskilled labor decreases when the price of capital increases.
• D)the price of capital is increasing.
• E)the demand curve for capital is upward-sloping.

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Definitions:

Information Access

The ability or the right to obtain and use information, typically emphasizing ease or barriers to entry in the context of technology or data.

Cash Management

The process of collecting, managing, and investing a company's cash flow in a way that optimizes its financial stability and profitability.

Investment

The process of distributing funds with the aim of earning returns or profits.

Operating Efficiently

The practice of minimizing waste and maximizing resources to achieve optimal productivity and profitability in a business's operations.