Labor and Land Are Substitutes

question 24

Multiple Choice

Labor and land are substitutes.If rent goes up and the amount of labor used goes down,we can assume that the

• A)output effect outweighed the substitution effect.
• B)the substitution effect outweighed the output effect.
• C)the substitution effect and the output effect canceled each other out.
• D)there is no way to determine the relative weights of the substitution effect and the output effect.

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Definitions:

Stocks

Shares in the ownership of a company, representing a claim on the company's assets and earnings.

Composed

Pertains to being made up of several parts or elements.

Variance

A measure of how much values in a data set differ from the mean of the data set.

Binomial Distribution

A probability distribution that summarizes the likelihood of a value taking one of two independent states and is used for experiments that have two possible outcomes (success or failure).