Which of the Following Would Generally Cause Firms to Expand

question 187

Multiple Choice

Which of the following would generally cause firms to expand output in the short run?

• A) a proportional increase in the prices of goods and services and the costs of producing them
• B) higher profit margins as the result of an unexpected increase in the prices of goods and services
• C) an unexpected reduction in aggregate demand
• D) an increase in wages and the prices of other resources

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Definitions:

Global Political

Pertaining to politics and international relations on a global scale, often involving issues of governance, power, and diplomacy between nations.

Economic Environment

The combination of factors that influence economic activities and outcomes, including government policies, market dynamics, economic trends, and resources.

Job Security

The probability that an individual will keep their job; a job with a high level of security is such that the individual has a low risk of becoming unemployed.

Meaningful Work

Employment or activities that are perceived as having significance and purpose, positively contributing to personal or societal well-being.