A Rapid Increase in the Number of Workers,other Things the Same,is

question 109

Multiple Choice

A rapid increase in the number of workers,other things the same,is likely in the short term to

• A)raise real GDP per person,but decrease real GDP.
• B)decrease both real GDP and real GDP per person.
• C)raise both real GDP and real GDP per person.
• D)raise real GDP,but decrease real GDP per person.

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Definitions:

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced, representing how fixed costs dilute as more units are produced.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor used in the production of goods.

Fixed Costs

Costs that do not vary with the level of output or sales in the short term, such as rent, salaries, or loan payments.

Long Run

A period of time in economics in which all factors of production and costs are variable, allowing all inputs to be adjusted.