FIGURE 23-3 Refer to Figure 23-3

question 94

Multiple Choice

FIGURE 23-3 Refer to Figure 23-3.Which of the following statements best describes the supply side of Economy A in its current equilibrium position?

• A)Unit costs are rising,but firms can produce more output by employing standby capacity and overtime labour,for example,with no increase in the price level.
• B)Firms are producing well below their capacity and are willing to produce more only if prices rise.
• C)Unit costs are rising rapidly as firms are producing beyond their capacity.Firms will produce more only if prices increase.
• D)Firms are producing well below their capacity and are willing to produce more output with no increase in price.
• E)Unit costs are rising,but firms are able to produce more output with no increase in the price level because there is excess capacity in the economy.

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Definitions:

Nonverbal Cues

Forms of communication without the use of spoken language, including gestures, facial expressions, body language, and other visual or auditory signs.

Language to Primates

The study or practice of teaching non-human primates to communicate using sign language or other forms of symbolic communication.

Mathematical Intelligence

One of the multiple intelligences proposed by Howard Gardner, focusing on the ability to understand and manipulate mathematical concepts and numbers.

General Ability

A term often used in psychology to refer to the overall efficiency or performance level of an individual's cognitive processes.