Refer to Figure 8-6

question 94

Multiple Choice

Refer to Figure 8-6.Suppose there is a change in relative factor prices and the cost-minimizing method of producing 2000 golf tees is now at point D.If the total cost of producing 2000 golf tees is still $60,it must be the case that

• A)the price of labour fell and the price of capital remained constant.
• B)the price of labour and capital both fell.
• C)the price of labour rose and the price of capital fell.
• D)the price of labour fell and the price of capital rose.
• E)the price of labour and capital both rose.

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Definitions:

Social Security Act

A U.S. law enacted in 1935 that created a system of transfer payments in which younger, working people support older, retired people.

Welfare

A system of government support for citizens in need, often including financial assistance, healthcare, and housing programs.

Welfare System

A government program designed to provide financial and other assistance to individuals and families in need.

Self-sufficiency

The ability of an individual, community, or nation to provide for its own needs without relying on external assistance.