A Fixed Input Is One

question 144

Multiple Choice

A fixed input is one:

• A) that exists in nature, and there is only so much of it.
• B) that can be used for one thing only.
• C) that can never produce more or less in any period.
• D) whose quantity cannot be changed in the short run.

---

Definitions:

Tax Burden

The distribution of tax payments among individuals or groups, often discussed in the context of equity and fairness.

Deadweight Loss

It represents the loss of economic efficiency when the equilibrium for a good or a service is not achieved or is not achievable.

Excise Tax

A tax directly levied on certain goods, services, or activities, such as tobacco, alcohol, or fuel, usually to discourage their use or generate revenue.

Short Run

A period during which at least one input (e.g., plant size, technology) is fixed, and firms can adjust only the variable inputs (e.g., labor).