With Regard to Cyclical and Structural Excess Capacity

question 33

Multiple Choice

With regard to cyclical and structural excess capacity:

• A)They are basically the same thing
• B)The latter signifies a long term imbalance in the industry
• C)The former may be unavoidable in some industries
• D)Both b and c above

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Definitions:

Notion

A concept, idea, or belief about something.

Feedback Loops

Mechanisms through which a system's output is fed back into the input, commonly used in biological and technical systems to maintain homeostasis or control.

Present

The period of time that is currently occurring, in contrast to the past or future.

Past

The period of time that has already occurred, in contrast with the present and the future.