Table: Data on Suburbia

question 87

Multiple Choice

Table: Data on Suburbia
Use this table, which represents autarkic and free trade
Production and consumption and resource usage for
Suburbia, to answer the following question(s) .

(Table: Data on Suburbia) Which of the following statement
Is CORRECT?

• A)Surburbia is a labor­intensive country.
• B)Suburbia is a labor­abundant country.
• C)Suburbia is a capital­intensive country.
• D)Suburbia is a capital­abundant country.

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Definitions:

Profit

The financial gain realized when the revenue gained from a business activity exceeds the costs, expenses, and taxes needed to sustain the activity.

Normal Profit

The minimum level of profit necessary for a firm to remain competitive in the market, essentially covering opportunity costs.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded in a market.

Purely Competitive Industry

A purely competitive industry is characterized by many buyers and sellers, homogenous products, and free entry and exit from the market, ensuring no single entity can control the market price.