An Industry Where a Change in the Number of Firms

question 150

Multiple Choice

An industry where a change in the number of firms does not affect the prices of the resources used in the industry will have a long-run supply curve that is

• A)vertical.
• B)horizontal.
• C)upsloping.
• D)downsloping.

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Definitions:

Stock Variable

A quantity measured at one specific time, representing a certain amount accumulated up to that time.

Money Supply

The total amount of monetary assets available in an economy at a specific time.

Price Level

A composite measure reflecting the prices of all goods and services in the economy relative to prices in a base year.

Consumer Spending

The total expenditure by households on goods and services within a certain period of time, a primary engine of economic activity.