In the Long Run, If Inputs Are Increased by 10

question 130

Multiple Choice

In the long run, if inputs are increased by 10 percent and output increases by 20 percent, then __________ are said to exist.

• A)economies of scale
• B)constant returns to scale
• C)diseconomies of scale
• D)diminishing marginal returns

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Definitions:

Bourgeoisie

The social class that came to own the means of production during modern industrialization, typically referring to wealthier members of society or the middle class.

Middle Class

A socioeconomic group situated between the working class and the upper class, typically composed of professionals, business owners, and white-collar workers.

Peasant

A farmer of low social status who owns or rents a small piece of land for cultivation, historically part of rural and agrarian societies.

Switzerland

A landlocked country in Central Europe known for its neutrality, diverse cultures, and high quality of life, as well as its mountains and lakes.