Which of the Following Statements Is True

question 174

Multiple Choice

Which of the following statements is true?

• A)Short-run economic fluctuations are made worse because prices are flexible.
• B)Short-run economic fluctuations would be less severe if prices were inflexible.
• C)If prices were fully inflexible, there would be no short-run economic fluctuations.
• D)If prices were fully flexible, there would be no short-run economic fluctuations.

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Definitions:

Oil Wells

These are drilling operations established to explore and extract petroleum and natural gas from underground reserves.

Patents

Legal rights granted by a government that give an inventor exclusive rights to use, make, and sell an invention for a certain period of years.

Coal Mines

Operations involved in extracting coal from the ground, often associated with environmental and safety regulations, and significant economic impact on regions.

Stocks

Financial instruments that represent ownership shares in a company, giving holders a claim on part of the company's assets and earnings.