If Two Inputs Are Substitutes in Production,and an Increase in the Price

question 6

Multiple Choice

If two inputs are substitutes in production,and an increase in the price of one input shifts the demand curve for the other input to the left,then

• A) the scale effect is greater than the substitution effect, and the two are gross complements.
• B) the scale effect is less than the substitution effect, and the two are gross complements.
• C) the scale effect is greater than the substitution effect, and the two are gross substitutes.
• D) the scale effect is less than the substitution effect, and the two are gross substitutes.

Identify situations that could pose legal liabilities and understand the implications of actions that constitute unintentional torts.

Recognize the importance of obtaining informed consent, especially in cases involving language barriers or cultural differences.

Identify the need for and effectively utilize an interpreter in healthcare settings when necessary.

Understand the role and responsibilities of a nurse in maintaining patient safety, including the use of restraints and ensuring proper patient care.

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Definitions:

Quantity Theory

An economic theory that proposes a direct relationship between the quantity of money in an economy and the level of prices of goods and services.

Doubled

Refers to an increase by 100% or a situation where a quantity has become twice as large.

Quantity Theory

The theory in economics that the quantity of money available in an economy is the major determinant of the economic activity level, prices, and inflation.

Crude Quantity

An initial, unrefined estimate of the amount or volume of a substance or material.