For Two Substitutes in Production,if the Substitution Effect Dominates

question 43

Multiple Choice

For two substitutes in production,if the substitution effect dominates,

• A) then the inputs are gross complements.
• B) then the inputs are gross substitutes.
• C) then the inputs could be either gross complements or gross substitutes.
• D) then the inputs cannot be used at the same time.

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Definitions:

Personal Factors

Individual characteristics that influence behavior and performance, such as attitudes, skills, knowledge, and personality traits.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.

Hardiness

A personality trait characterized by a sense of control over events, commitment to life and work, and the courage to face stressful situations.

African Americans

A racial or ethnic group in the United States with ancestors from Africa, particularly those of Sub-Saharan African descent.