In the Long Run, What Determines the Level of Total

question 51

Multiple Choice

In the long run, what determines the level of total production of goods and services in an economy?

• A)the interest rate and the amount of national saving
• B)the quantity of capital and labor and production technology
• C)consumption, investment, and government spending
• D)the marginal products of capital and labor, constant returns to scale, and competition

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Definitions:

High\Low Pricing

A retail strategy that involves alternating between high prices and discount sales to attract customers while maximizing profit margins.

Promotion of Sales

Activities and strategies to increase consumer awareness and sales of a product or service, often temporary to stimulate demand.

Competitor Orientation

A company objective based on the premise that the firm should measure itself primarily against its competition.

Status Quo Pricing

A pricing strategy where prices are set and maintained to match those of the competition or to adhere to existing market conditions, without seeking to disrupt the current market balance.