Question 1
Factors of production such as labor and capital
◦ are complementary.
◦ are substitutable.
◦ can be complements and also substitutes.
◦ can be neither complements nor substitutes.
Question 2
Related to the
Economics in Practice on page 151: You own a truck and use it to deliver merchandise to retailers and hire a driver to make such deliveries. The speed at which you instruct the driver to drive depends on
◦ the driver's wage only.
◦ the price of gasoline only.
◦ the driver's wage and the price of gasoline.
◦ neither the driver's wage nor the price of gasoline.