The Demand for Capital Is Similar to the Demand for Labor

question 232

Multiple Choice

The demand for capital is similar to the demand for labor in that

• A)the marginal product of labor is derived from the marginal product of capital.
• B)the marginal revenue product curve for labor is the same as the marginal revenue product curve for capital.
• C)both are derived demands.
• D)both are inelastic at high prices and elastic at low prices.

Understand the implications of changes in the parity ratio for farmers.

Analyze the economic consequences of government price support programs in farm markets.

Grasp the justification behind public aid to agriculture.

Understand the concept and implications of parity in farm policy.

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