When the Government Sets Limits on Ingredients Found in Prescription

question 46

Multiple Choice

When the government sets limits on ingredients found in prescription medications or on factory emissions, this would be an example of which of the following?

• A) A referendum
• B) Deregulation
• C) Gerrymandering
• D) Regulation
• E) An initiative

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Definitions:

Long-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity supplied over a long period, accounting for adjustments in all factors of production.

Short-Run Supply Curve

A graphical representation showing the relationship between the price of a good and the amount that producers are willing to supply, over a short period.

Output

The quantity of goods or services produced by a firm, industry, or economy in a given time period.

Average Variable Cost

The total variable costs divided by the quantity of output produced, indicating the variable cost of producing each unit.