The Aggregate Supply Curve of an Economy

question 110

Multiple Choice

The aggregate supply curve of an economy:

• A)is a downward-sloping straight line.
• B)is an upward-sloping curve.
• C)is a vertical line parallel to the price axis.
• D)is a horizontal line parallel to the output axis.
• E)is a ray from the origin.

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Definitions:

Production Isoquant

A production isoquant is a curve that represents all combinations of inputs that yield the same level of output, used in production theory to analyze efficient production.

Inputs

The resources, labor, materials, and capital, that are used in the production process to create goods or services.

Profitable

Describing a situation, venture, or entity that generates income in excess of its expenses, thereby yielding a financial gain.

Marginal Product

The additional output produced as a result of utilizing one more unit of a particular input, holding all other inputs constant.