An Increase in the Wage Rate Will Have a Greater

question 11

Multiple Choice

An increase in the wage rate will have a greater effect on average costs

• A)the larger the proportion labor costs are of total costs and the easier it is to substitute capital for labor.
• B)the larger the proportion labor costs are of total costs and the harder it is to substitute capital for labor.
• C)the greater is the diminishing marginal product of labor.
• D)the greater are returns to scale.

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Definitions:

Discrimination

Unjust treatment of different categories of people or things, especially on the grounds of race, age, or sex.

Employment

The state of having a paid job or profession, contributing one's labor in exchange for compensation.

Just Society

A community governed by fairness, equality, and justice, where all members have equal rights, opportunities, and treatment.

Women

Mature female humans.