A labor-intensive method of production is one that:

A) requires employees to work harder than they would in other occupations.
B) relies exclusively on labor.
C) relies on large quantities of labor and smaller quantities of capital equipment.
D) combines a small but sophisticated labor force with a large amount of capital.


C

Economics

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Indicate whether the statement is true or false

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The tax interaction effect is the _________ in excess burden in the labor market stemming from the _______ in real wages caused by a Pigouvian tax.

A. increase; increase B. reduce; reduction C. increase; reduction D. reduction; increase

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Economics