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:

Profit Growth

An increase in the financial gain that results from the difference between a business's revenue and its expenses.

Retail Life Cycle

The process of growth, maturity, and decline that retail shops or formats go through, similar to product life cycles, reflecting changes in customer preferences and market dynamics.

Market Share

The segment of the marketplace dominated by a specific company or product, frequently measured as a share of the overall sales within that market.

Start-Up Costs

The initial expenses required to establish a new business, including but not limited to licensing fees, equipment, and marketing.