Suppose That Land and Labor Are Substitute Resources

question 40

Multiple Choice

Suppose that land and labor are substitute resources.If the wage rate rose,the employment of land would rise only if

• A)the output effect outweighed the substitution effect.
• B)the substitution effect outweighed the output effect.
• C)the substitution effect was equal to the output effect.

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Definitions:

Economic Integration

A process by which countries reduce trade barriers to enable more free flow of goods, services, and capital among each other, leading to increased economic interdependence.

Geographic Locales

Geographic locales refer to specific geographical areas or locations, each with its own unique characteristics and cultural practices.

Capitalism

An economic system where trade, industry, and the means of production are largely or entirely privately owned and operated for profit.

Globalization

The process of increasing interconnectedness and interdependence among countries worldwide through the exchange of goods, services, technology, and culture.