What does it mean for two inputs to be complements? Give an example that describes how labor and capital can be complementary inputs
What will be an ideal response?
Two inputs are complementary when the presence of one raises the productivity of another. A worker with a shovel can dig holes more quickly than one without.
You might also like to view...
Which group within the National Bureau of Economic Research officially determines whether the economy is in a recession or expansion?
A) The G-4 B) The Business Cycle Dating Committee C) The Business Cycle Governors D) The Turning Point Group
Which of the following is not a way we sometimes confuse correlation and causation?
A. Correlation without causation B. Omitted variables C. Reverse causality D. Non-linear relationships
What is the most obvious reason for trying to reduce poverty?
a. a sense of ethics and morality b. an attempt to combat terrorism c. demonstrating support for international organizations d. a push for increased global wealth
Refer to Figure 5-16. What is the optimal quantity of street lights to install?
A) 3
B) 4
C) 6
D) 9