The Elasticity of Substitutions Is

question 13

Multiple Choice

The elasticity of substitutions is

• A)the change in capital over the change in the price of labor.
• B)the percentage change in capital over the percentage change in labor.
• C)the change in the price of capital over the change in the price of labor.
• D)the percentage change in the price of capital over the percentage change in the price of labor.
• E)the percentage change in the capital/labor ratio resulting from a 1 percent change in the relative price of labor.

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Definitions:

Extraneous Variables

Variables that are not the focus of a study but can affect the outcome of research if not properly controlled.

Participants' Reactivity

The alteration of participants' behavior or responses due to the awareness of being observed or studied.

Operational Definition

A clear, precise description of a variable, term, or object in terms of the operations or processes used to observe and measure it.

Attractiveness

A quality that makes a person, place, thing, or idea appealing to the senses, mind, or emotions, often leading to positive regard or interest.