Two Inputs,labor and Capital,are Considered Complements If

question 14

Multiple Choice

Two inputs,labor and capital,are considered complements if:

• A)a fall in the price of labor leads to a fall in the price of capital.
• B)they can replace each other in the production process.
• C)a fall in the price of labor leads to an increase in the price of capital.
• D)increasing the quantity of labor increases the marginal product of capital.

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Definitions:

Economic Collapse

Economic collapse describes a sudden and severe downturn in the economy of a country or region, characterized by extreme financial distress, such as a stock market crash, hyperinflation, or the fall of a currency.

Unemployment

The condition of being without a job, but actively seeking work and willing to work, often used as an important economic indicator.

Work Force

The total number of people employed or available for employment in a specific community, region, or country, including both the employed and those seeking employment.

Collective Bargaining

The negotiation process between employers and a group of employees aimed at agreements to regulate working salaries, working conditions, and other aspects of workers' compensation and rights.