Which of the Following Statements Is Correct

question 65

Multiple Choice

Which of the following statements is correct?

• A)economic variables measured in physical units are nominal variables, and economic variables measured in monetary units are real variables
• B)economic variables measured in physical units are real variables, and economic variables measured in monetary units are nominal variables
• C)economic variables measured in physical units are actual variables, and economic variables measured in monetary units are nominal variables
• D)economic variables measured in physical units are real variables, and economic variables measured in monetary units are actual variables

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Definitions:

Isoquant

Curve showing all possible combinations of inputs that yield the same output.

Minimum Cost

The lowest possible expenditure to produce a given quantity of goods or services.

Expansion Path

Curve passing through points of tangency between a firm’s isocost lines and its isoquants.

Long Run

A period in which all factors of production and costs are variable, allowing all inputs to be adjusted.