An Increase in the Supply of Capital, Which Is a Substitute

question 101

True/False

An increase in the supply of capital, which is a substitute to labour, will lead to a decrease in the demand for labour.

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Definitions:

Face Validity

The degree to which an assessment or test appears to measure what it is intended to measure, based on subjective judgment.

Criterion-related Validity

The extent to which a measure is related to an outcome or criterion, testing how well one measure predicts an outcome for another measure.

Construct Validity

The extent to which a test measures what it claims to be measuring.

Construct Validity

The degree to which a test measures what it claims to be measuring, specifically the ability of a measurement tool to actually measure the theoretical construct it intends to measure.