In the Widget Industry,it Takes Two Workers (With Other Inputs)to

question 21

Multiple Choice

In the Widget industry,it takes two workers (with other inputs) to produce each widget and since consumers demand 1000 widgets at its current price,2000 workers are employed in the industry.Which of the following could occur if the price of capital falls and labor and capital are substitutes in production?

• A) It takes 2.2 workers per widget and 1200 widgets are produced and sold.
• B) It takes 1.9 workers per widget and 1200 widgets are produced and sold.
• C) It takes 2.2 workers per widget and 900 widgets are produced and sold.
• D) It takes 1.9 workers per widget and 900 widgets are produced and sold.

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Definitions:

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Contingency Management

A behavioral therapy approach where desirable behavior is reinforced with rewards, while undesirable behavior is not, to foster behavior change.

Drug-Free Screenings

Procedures to test individuals for the absence of illicit drugs or substances in their system, typically used in employment or legal settings.

Community-Based

Pertaining to services or activities that are located within and designed to serve a particular local community.