The Demand for Capital Is Similar to the Demand for Labour

question 40

Multiple Choice

The demand for capital is similar to the demand for labour in that

• A)the marginal product of labour is derived from the marginal product of capital.
• B)the marginal revenue product curve for labour is the same as the marginal revenue product curve for capital.
• C)both are derived demands.
• D)both are inelastic at high prices and elastic at low prices.

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Definitions:

Outsourcing

The business practice of hiring external firms or individuals to perform tasks, handle operations, or provide services that are either difficult to manage or outside the company's core competencies.

Major Business Function

Core activities essential for the operation and success of a business, such as marketing, production, and sales.

Outsourcing

The practice of hiring third parties to perform services, handle operations or provide goods that are either difficult to manage or are outside of a business's core competencies.

Benefits Administration

The process and system by which employee benefit programs are designed, implemented, and managed by an organization.