Two Inputs,labor and Capital,are Considered Substitutes If

question 92

Multiple Choice

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

• A)a fall in the price of labor leads to no change in the price of capital
• B)the marginal rate of technical substitution of labor for capital is less than one.
• C)a fall in the price of labor leads to an increase in the price of capital
• D)increasing the quantity of labor decreases the marginal product of capital

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Definitions:

Parental Investment Theory

A theory in evolutionary biology that suggests differences in mating behaviors and parental investment are a result of evolutionary pressures.

Mating Strategies

Behavioral approaches employed by individuals to attract or choose partners for reproduction.

Reproductive Potential

The maximum possible number of offspring that an organism can produce under optimal conditions.

Affiliation Motive

The psychological drive to create and maintain social bonds and relationships with others.