ECONOMICS
MARKET FAILURES
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
A storm destroys several factories, thereby reducing the stock of capital. What effect does this event have on factor markets?
|
|
Wages and the rental price of capital both rise
|
|
|
Wages and the rental price of capital both fall
|
|
|
Wages rise and the rental price of capital falls
|
|
|
Wages fall and the rental price of capital rises
|
Explanation:
Detailed explanation-1: -A storm destroys several factories, thereby reducing the stock of capital. What effect does this event have on factor markets? Wages and the rental price of capital both rise.
There is 1 question to complete.