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Changes in the price of capital have a similar effect on the demand for labour as a change in the price of any substitute good has on a demand curve. Thus if the cost of labour is relatively low, firms will reduce their use of capital (technology) resulting in greater use of labour in production.
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Capital as economists use the term refers to what?
the profits that come from hiring and using labor and natural resources
This term refers to the tendency of consumers to buy a lower-priced product instead of a higher-priced product.?
substitution
What is meant by the term human-capital differences?
Human-capital differences reflect how people invest various amounts of both their physical and mental capacities toward the achievement of specific goals.
What is fixed and working capital?
Fixed capital is something that is need for long term ...working capital is the capital or funds for managing and carrying out day to day operations. Apart from this a important point to note is that usually fixed assets or long term assets of the company are bought from fixed capital. Buying short term current assets from funds for long term would be illogical.
How can you use the term physical capital in a sentence?
My tractor is an example of physical capital
What is meant by the term capital cost?
the capital cost is the exact price
What is meant by net working capital?
The phrase "net working capital" is a financial term which means the available liquid assets at a company's disposal. The term is sometimes just referred to as "working capital" or WC.
Capital as economists use the term refers to what?
the profits that come from hiring and using labor and natural resources
What do you meant by prefernce share capital?
Preference share capital means share capital which have preference over all other kind of share capital in term of profit and clearance at the time of dissolution of business.
What is meant by loan capital?
short term and long term liabilities, which have due dates and the interest is paid. for example , debentures. compnay raises funds by issuing debentures and thes funds are loan capital. which means capital raised by loan.
What is long-term credit?
Long-term credit is used primarily for long periods of time. It is meant for businesses in relation to the expanded production of fixed capital.
This term refers to the tendency of consumers to buy a lower-priced product instead of a higher-priced product.?
substitution
What is meant by the term human-capital differences?
Human-capital differences reflect how people invest various amounts of both their physical and mental capacities toward the achievement of specific goals.
What is meant by the term QIP?
The term QIP means "qualified institutional placement". This is a tool for capital raising, where a listed company or stock market can issue equity shares and others.
What is the mathematical definition of substitution?
In mathematics substitution is when one term in an equation is replaced by another that has a known value. This is so that the equation itself can be resolved.
What is Euphenism?
== A euphemism is the substitution of a polite term for one that may be offensive.
What is meant by the term cathetarisation?
what is meant by the term catheterisation
