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Answer the Following

Question 83

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Answer the following:
a)A backhoe,a piece of excavating equipment which is mounted on a tractor,acts as both a complement and as a substitute to labor.Explain how it could be used as a complement or a substitute to labor.
b)Explain why the standard of living increases in general,even for labor,when capital substitutes for labor.

Correct Answer:

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a)The backhoe serves as a complement to ...

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