If the Capital Stock Remains Fixed While the Supply of Labor

question 142

Multiple Choice

If the capital stock remains fixed while the supply of labor increases, it is likely that

• A) the productivity of labor will rise.
• B) the productivity of labor will fall.
• C) the productivity of labor will not change.
• D) output per capita will rise.

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Definitions:

Franchisor

An entity that grants the right to use its trademark, business model, and operational system to an individual or company (the franchisee) under agreed-upon terms.

Franchisee

An individual or company that acquires the rights to operate a business under the franchisor's brand and business model.

Orangetheory Fitness

A franchise-based fitness company offering hour-long, high-intensity workout classes that combine cardiovascular and strength training.

Limited-Service

Refers to businesses or offerings characterized by a reduced or more focused range of services, typically at a lower cost.