To Economists, the Main Difference Between the Short Run and the Long

question 126

Multiple Choice

To economists, the main difference between the short run and the long run is that

• A)the law of diminishing returns applies in the long run, but not in the short run.
• B)in the long run all resources are variable, while in the short run at least one resource is fixed.
• C)fixed costs are more important to decision making in the long run than they are in the short run.
• D)in the short run all resources are fixed, while in the long run all resources are variable.

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Definitions:

Margin of Error

A measure of the uncertainty or potential error in the results of a survey or experiment, often expressed as a plus-minus figure.

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values.

Mean Height

The average height of a group of individuals, calculated by summing their heights and dividing by the number of individuals.

Confidence Interval

A spectrum of values obtained from statistics of a sample, which is likely to encompass the actual population parameter at a specific probability level.