Assuming That Labor Is the Only Variable Input, If Society

question 194

Multiple Choice

Assuming that labor is the only variable input, if society values a good ________ it costs firms to hire the workers to produce that good, the good ________ be produced.

• A) more than; will
• B) less than; will
• C) more than; will not
• D) equal to what; will not

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Definitions:

Liquidity Problems

Liquidity problems occur when an individual or business lacks sufficient liquid assets (like cash) to meet its short-term financial obligations.