Asked by
Anna-Brooke Matkins
on Oct 12, 2024Verified
Suppose that land and labor are substitute resources.If the wage rate rose,the employment of land would rise only if
A) the output effect outweighed the substitution effect.
B) the substitution effect outweighed the output effect.
C) the substitution effect was equal to the output effect.
Wage Rate
The amount of payment that a worker receives per unit of time (hourly, daily, etc.) or per unit of output.
Substitute Resources
Alternative products or services that can replace each other in use, offering consumers choices and influencing supply and demand dynamics in markets.
Employment of Land
The use of land resources for productive or economic activities, including farming, building, or conservation efforts.
- Examine the ideas of substitution and output effects in the utilization of resources.
Verified Answer
PS
Learning Objectives
- Examine the ideas of substitution and output effects in the utilization of resources.