Firms in an economy with high capital costs have an incentive to use more ________ techniques.
A. capital-dependent
B. labor-saving
C. capital-intensive
D. labor-intensive
Answer: D
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The CPI was 170 last year and is 190 this year. What is the inflation rate between these two years?
A) 20 percent B) 11.8 percent C) 18 percent D) 15.0 percent E) 10.5 percent
Make use of a T-account to show the effect of the Fed's purchase of $5 billion worth of foreign government securities on the Fed's balance sheet (note: assume the Fed writes a check to purchase the securities)
What will be an ideal response?
You decide to skip going to a movie with friends and stay home and study. How did you reach your decision?
a. By determining that you were not interested in the movie b. By evaluating that the marginal cost of studying exceeded the marginal benefit c. By determining that the marginal benefit of studying was greater than the marginal cost d. By realizing that there was a very high opportunity cost associated with studying
The United States has a comparative advantage in the production of wheat, and Haiti has a comparative advantage in the production of sugar. If both countries specialize based on the theory of comparative advantage
A. only the production of wheat will increase. B. only the consumption of both goods will increase. C. the production and consumption of both goods will increase. D. only the production of both goods will increase.