Multiple Choice QuestionWhich of the following infers the direction of the change in the demand for resource labor due to a change in capital?Multiple choice question.The direction of the change in labor demand will depend on whether labor and capital are solely substitutes in productionThe direction of the change in labor demand will depend on whether labor and capital are solely complements in productionThe direction of the change in labor demand will depend on whether labor and capital are substitutes or complements in productionThe direction of the change in labor demand will depend on whether labor and capital are normal or inferior goods in production

Multiple Choice QuestionWhen the relative cost of labor rises, a decision must be made whether to substitute and decrease the use of labor and increase the use of another resource input such as machines in order to produce the same amount of output at a lower cost. This statement describes the Blank______ effect.Multiple choice question.netresourcesubstitutionoutput

Multiple Choice QuestionWhich of the following is true concerning resource productivity and demand?Multiple choice question.A decrease in productivity of a resource reduces demand for the resource, but a decrease in demand for the resource does not affect the productivity.An increase in the productivity of a resource will increase the demand for the resource and vice versa.An increase in the productivity of a resource will reduce the demand for the resource and vice versa.A decrease in the productivity of a resource will increase the demand for the resource and vice versa.

Multiple Choice QuestionWhich of the following exemplifies the substitution effect in regard to substitute resources?Multiple choice question.A decline in the price of machinery prompts a firm to substitute labor for machinery, allowing it to produce at the lower cost of machinery.A decline in the price of machinery prompts a firm to substitute machinery for labor, allowing it to produce output at the lower cost of machinery.An increase in the price of machinery and labor prompts a firm to substitute cheaper machines and less-skilled workers.An increase in the price of machinery prompts a firm to substitute machinery for labor, allowing it to produce at the lower cost.

Multiple Choice QuestionWhich of the following exemplifies the concept of "quantities of other resources" as contributing to the marginal product of a particular resource?Multiple choice question.A lesser amount of capital and land resources used with labor will increase labor's marginal productivity and thus labor demand.A greater amount of capital and land resources used with labor will decrease labor's marginal productivity and thus labor demand.An unchanging amount of capital and land resources used with labor will eliminate labor's marginal productivity and thus labor demand.A greater amount of capital and land resources used with labor will increase labor's marginal productivity and thus labor demand.

An increase in the price of raw materials translates into higher production costs and hence a _____ shift in market _____.Multiple choice question.leftward; supplyrightward; supplyleftward; demand