Which of the Following Is an Example of a Short-Run

question 40

Multiple Choice

Which of the following is an example of a short-run decision?

• A) An automobile manufacturing company considering whether to invest in robotic equipment to develop a more cost-effective production technique.
• B) An automobile manufacturing company considering whether to expand its existing workforce.
• C) A business consulting firm considering whether to open a new office in another city where many of its clients are based.
• D) A business consulting firm considering whether to hire new consultants, move to a larger space, and purchase additional equipment.

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Definitions:

Structurally Unemployed

Individuals who are unemployed due to a mismatch between their skills and the needs of the current labor market.

Frictional Unemployment

The period of joblessness people face when searching for new employment or their first job, a natural part of a dynamic economy.

Public Policy

Government actions, which could be laws, regulatory measures, courses of action, and funding priorities, regarding various issues implemented by the government.

Unemployment Insurance

A public scheme offering monetary help to people unemployed due to reasons beyond their control.