An Increase in the Supply of Capital, Which Is a Complement

question 87

Multiple Choice

An increase in the supply of capital, which is a complement to labour, will lead to

• A) a decrease in the quantity of labour demanded.
• B) an increase in the demand for labour.
• C) a decrease in the demand for labour.
• D) an increase in the quantity of labour demanded.

---

Definitions:

Property Rights

Legal rights to use, manage, and obtain benefits from a resource, property, or invention.

Market Organization

A method of organization in which private parties make their own plans and decisions with the guidance of unregulated market prices. The basic economic questions of consumption, production, and distribution are answered through these decentralized decisions.

Competitive Markets

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar but differentiated, leading to competition on price, quality, and innovation.

Private Property Rights

Legal rights that grant individuals or organizations exclusive ownership and control over their property.