An Increase in the Amount of Human Capital ________ the Short-Run

question 49

Multiple Choice

An increase in the amount of human capital ________ the short-run aggregate supply curve and ________ the long-run aggregate supply curve.

• A) shifts; shifts
• B) shifts; does not shift
• C) does not shift; shifts
• D) does not shift; does not shift

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Definitions:

Purely Competitive Industry

An industry characterized by many buyers and sellers, free entry and exit, and a standardized product, leading to firms being price takers.

Monopolist

A market participant that is the sole provider of a good or service, thus controlling the entire market and having the ability to set prices unilaterally.

Identical Costs

Refers to costs that are the same across different products, services, or processes.