Which of the Following Is a Sign That an Economy

question 48

Multiple Choice

Which of the following is a sign that an economy is in poor health?

• A) a prolonged decline in total output
• B) failure of total output to equal total income
• C) failure of output to remain constant over time
• D) a shift in production,from goods to services
• E) a prolonged rise in total income

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Definitions:

Marginal Product

The additional output resulting from using one more unit of a particular input, assuming all other inputs remain constant.

Monopsony

A market structure in which there is only a single buyer of a good, service, or resource.

Labor Supply Curve

A graphical representation showing the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Monopsonist

A market condition where there is only one buyer for a product or service, giving the buyer significant power over prices and terms.