Suppose That Due to a Severe Drought in Texas, 100,000

question 258

Multiple Choice

Suppose that due to a severe drought in Texas, 100,000 farmers relocate from Texas to Louisiana. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners in Louisiana?

• A)Both wages and rents would increase.
• B)Both wages and rents would decrease.
• C)Wages would increase, and rents would decrease.
• D)Wages would decrease, and rents would increase.

Recognizing limitations and strengths of experimental research.

Identifying strategies to control for demand characteristics and experimenter bias.

Understand the definition and scope of social psychology.

Identify and explain key concepts in social psychology such as attributions, the primacy effect, and the self-serving bias.

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Definitions:

Guarantee

A formal promise or assurance, typically in writing, that certain conditions will be fulfilled or a product will meet a specified standard of quality.

Indemnity

A legal agreement to compensate for any losses or damages incurred by another party.

Statute of Frauds

A legal principle that certain types of contracts must be in writing and signed by the party to be charged, in order to be enforceable.

Legal Person

An entity, such as a corporation, recognized by law as having rights and obligations.