If the Wage Rate Rises and There Is a Net

question 36

Multiple Choice

If the wage rate rises and there is a net decrease in the use of capital by a firm

• A)the substitution effect outweighed the output effect.
• B)the output effect outweighed the substitution effect.
• C)the substitution and output effects were equal.
• D)there is no way to determine the relative strengths of the output and substitution effects.

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Definitions:

Experience-Expectant

Processes of brain development that seem to anticipate experiences that are universal in all normally developing members of our species.

Plasticity

The capacity of the brain to adapt or change in response to experiences or learning, including the formation of new neural connections.

Vision

The ability to perceive and interpret the surrounding environment through light in the visible spectrum striking the retina of the eye.

Senses

The physiological capacities of organisms that provide data for perception, including sight, hearing, smell, taste, and touch.