Which of the Following Represents a Long-Run Adjustment

question 111

Multiple Choice

Which of the following represents a long-run adjustment?

• A)A farmer uses an extra dose of fertilizer on his corn crop.
• B)Unable to meet foreign competition, a U.S. watch manufacturer sells one of its branch plants.
• C)A steel manufacturer cuts back on its purchases of coke and iron ore.
• D)A supermarket hires four additional clerks.

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Definitions:

Quota

A limit set by a government on the quantity of a particular product that can be imported or exported within a given timeframe, used for trade regulation.

Policy Action

A deliberate action taken by a government or other organization to influence economic, social, or environmental outcomes.

Domestic Supply

The sum of all products and services made within a nation, ready for use domestically or for sending abroad.

Domestic Demand

The total demand for goods and services within a country, including demand from both consumers and businesses.