If an Industry Is Highly Profitable, It Is an Indication

question 53

Multiple Choice

If an industry is highly profitable, it is an indication that:

• A) the marginal value of resources is high, and more resources need to flow into the industry.
• B) the marginal value of resources is low, and resources need to flow out of the industry.
• C) labor and, to a limited extent, capital are being exploited.
• D) firms are using high-value inputs to create low-value outputs.

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Definitions:

Hydraulic Circuit

A system using hydraulic fluid under pressure to transfer force and motion between components.

Gallons Per Minute

A measure of fluid flow rate that indicates how many gallons of fluid pass a particular point in one minute.

Atmospheric Pressure

The pressure exerted by the weight of the atmosphere, typically measured at sea level.

Hydraulic Circuit

A system of interconnected components using pressurized fluid to perform work, such as moving machinery parts.