If Technology Dictates That Labor and Capital Must Be Used

question 128

Multiple Choice

If technology dictates that labor and capital must be used in fixed proportions, an increase in the price of capital will cause a firm to use

• A) more labor as a consequence of the substitution effect.
• B) more labor as a consequence of the output effect.
• C) less labor as a consequence of the substitution effect.
• D) less labor as a consequence of the output effect.

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Definitions:

T-cell Count

A measure of the number of T-cells, a type of white blood cell, in the bloodstream, used to assess immune system health, particularly in the context of HIV/AIDS.

HIV Antibodies

Proteins produced by the immune system in response to infection with the human immunodeficiency virus, used in testing for HIV.

Antigens

Substances that the body recognizes as foreign and that can trigger an immune response, typically proteins or polysaccharides on the surfaces of bacteria, viruses, or other pathogens.

Antibodies

Proteins produced by the immune system to identify and neutralize foreign objects like bacteria and viruses.