Assume That the Vian Company Is Renting Capital and Hiring

question 40

Multiple Choice

Assume that the Vian Company is renting capital and hiring labor such that the bang per buck from each resource is the same. If wages of labor increase, its use of labor _________ and capital _________.

• A) increases; falls
• B) falls; falls
• C) increases; increases
• D) stays the same; falls
• E) falls; increases

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Definitions:

Mental Retardation

An outdated term now referred to as intellectual disability, characterized by significant limitations in intellectual functioning and adaptive behavior.

Hyperactivity

A condition characterized by excessive movement, impulsivity, and difficulty in maintaining attention, often associated with attention deficit hyperactivity disorder (ADHD).

Amniocentesis

A medical procedure used in prenatal diagnosis to sample a small amount of amniotic fluid for the testing of chromosomal abnormalities, fetal infections, and sex determination.

Amniotic Fluid

The protective liquid contained within the amniotic sac that surrounds and cushions a fetus during pregnancy.