A High Elasticity of Substitution Between Capital and Labor Implies

question 40

Multiple Choice

A high elasticity of substitution between capital and labor implies that labor demand will be:

• A)price elastic.
• B)unitary price elastic.
• C)price inelastic.
• D)more inelastic than capital demand.

---

Definitions:

Myelinization

The process of forming a myelin sheath around the nerves in the body, which enhances the speed and efficiency of electrical signal transmission in the nervous system.

Cortex

the outer layer of the cerebrum in the brain, involved in numerous high-level functions including thought, memory, and consciousness.

Rooting Reflex

The Rooting Reflex is an automatic movement response observed in infants, who naturally turn their head toward a touch on their cheek and open their mouth to 'root' in the direction of the touching object, typically for breastfeeding.

Moro

A primitive reflex seen in newborn infants, characterized by spreading the arms, pulling the arms in, and usually crying, in response to a sensation of falling.