A High Elasticity of Substitution Between Capital and Labor Implies

question 40

Multiple Choice

A high elasticity of substitution between capital and labor implies that labor demand will be:

• A)price elastic.
• B)unitary price elastic.
• C)price inelastic.
• D)more inelastic than capital demand.

Understand the mechanisms for protecting intellectual property and their role in encouraging innovation.

Grasp the economic implications of innovation and diffusion in the marketplace.

Understand the distinction between invention, innovation, and diffusion.

Recognize examples of product and process innovation.

---

Definitions:

Adductor Longus

A muscle in the inner thigh that functions to pull the thigh toward the body's midline.

Plantar Flexion

A movement of the foot that increases the angle between the shin and the top of the foot, as seen when standing on tiptoe.

Popliteus

A small muscle located at the back of the knee joint, crucial for initiating knee flexion.

Tibialis Posterior

A muscle in the leg that supports the arch of the foot and aids in walking by controlling plantar flexion and inversion of the foot.