In Economics, the Short Run Is the Time Frame in Which

question 139

Multiple Choice

In economics, the short run is the time frame in which the quantities of _______ and the long run is the period of time in which _______.

• A) some factors of production are variable; the quantities of all factors of production are fixed
• B) all factors of production are fixed; the quantities of all factors of production can be varied
• C) all factors of production are variable but technology is fixed; technology is variable
• D) some factors of production are fixed; the quantities of all factors of production can be varied

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Definitions:

Perpetual System

An inventory system that records the sale or purchase of inventory immediately through the use of computerized point-of-sale systems and enterprise asset management software.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the appropriate period for accurate financial reporting.

Sales Revenue Section

The part of a financial statement that details the income generated from sales of goods or services before any costs or expenses are subtracted.

Merchandising Company

A business that purchases goods wholesale and sells them retail; primarily involved in the selling of merchandise.