If an Earthquake Destroys Some of the Capital Stock, the Neoclassical

question 59

Multiple Choice

If an earthquake destroys some of the capital stock, the neoclassical theory of distribution predicts:

• A) the real wage will rise and the real rental price of capital will fall.
• B) both the real wage and the real rental price of capital will fall.
• C) both the real wage and the real rental price of capital will rise.
• D) the real wage will fall and the real rental price of capital will rise.

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Definitions:

Opponent-Process Theory

A theory of emotion and motivation that suggests emotions are paired and when one is experienced, the other is suppressed, leading to emotional balance.

Process Pairs

A paired approach to analyzing or understanding a process by comparing two elements or stages for better insight or efficiency.

color-sensitive cones

Cells in the eye's retina that enable the perception of color are known as photoreceptors.

Color-Deficient

A condition where an individual has a reduced ability to see color or differences in color.