If the price of labor falls relative to the price of capital, and as a result the quantity of capital employed decreases, then it can be concluded that

A) the substitution effect is greater than the output effect.
B) the output effect is greater than the substitution effect.
C) the income effect is greater than the output effect.
D) labor cannot be easily substituted for capital.

Which of the following is true of an individualist culture?

A) Group harmony takes precedence over the wishes of the individual.
B) The self is defined in the context of relationships.
C) The independence of the individual often takes precedence over the needs of the group.
D) The sense of self is viewed as more flexible than it is in collectivist cultures.