A storm destroys several factories, thereby reducingthe stock of capital. What effect does this event haveon fac tor markets?a. Wages and the rental price of capital both rise.b . Wages and the rental proce of capital both fall.c. Wages rise and the rental price of capital falls.d . Wages fall and the rental price of capital rises.
A storm destroys several factories, thereby reducingthe stock of capital. What effect does this event haveon fac tor markets?a. Wages and the rental price of capital both rise.b . Wages and the rental proce of capital both fall.c. Wages rise and the rental price of capital falls.d . Wages fall and the rental price of capital rises.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
A storm destroys several factories, thereby reducing the stock of capital. What effect does this event have on fac tor markets? a. Wages and the rental b . Wages and the rental proce of capital both fall. c. Wages rise and the rental price of capital falls. d . Wages fall and the rental price of capital rises. |
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education