The Aggregate Supply Curve Is Usually Assumed to Get Progressively

question 119

Multiple Choice

The aggregate supply curve is usually assumed to get progressively steeper at relatively higher levels of output because

• A)of increasing factor prices.
• B)of increasing productivity of the factors of production.
• C)of diminishing marginal productivity of the factors of production.
• D)of rising competition among price setters.
• E)of excess capacity at higher levels of output.

Recognize the role of industry averages in evaluating a business.

Identify the advantages and disadvantages of buying an existing business, including supplier relationships and customer familiarity.

Acknowledge the importance of formalizing verbal agreements in writing when purchasing a business.

Understand the increasing popularity of buying existing businesses as a pathway to small business ownership.

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Definitions:

Unemployment Rate

The share of the labor market that is unoccupied but searching for jobs.

Cyclical Unemployment

Unemployment that arises during periods of economic downturn or recession, reflecting the overall health of the economy rather than individual or structural factors.

Frictional

Pertaining to the period of time and inefficiency in processes where resources, especially labor, move from one employment to another, contributing to transient joblessness.

Unemployment Rate

The portion of the labor market that is out of work and actively pursuing job opportunities.