Author Question: The demand for capital, as an input in production, will decrease if: a. labor and capital are ... (Read 35 times)

elizabeth18 · **on:** Jun 30, 2018

The demand for capital, as an input in production, will decrease if:
a. labor and capital are substitutes in production and the supply of labor decreases.
b. the demand for the final good it produces increases.
c. capital becomes more productive.
d. the price of capital decreases.
e. labor and capital are substitutes in production and the wage rate declines.

Question 2

To examine a real-world issue, economists look at the real-world results to see how they differ from those of a free market.
a. True
b. False
Indicate whether the statement is true or false