Why Does Economic Thinking Require Taking Both the Long-Run View

question 33

Essay

Why does economic thinking require taking both the long-run view and the short-run view?

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Definitions:

Ownership

The state or fact of exclusive rights and control over property, which can be an object, land/property, or intellectual property.

Control

In the context of business, control refers to the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities, often achieved through ownership of more than half of the voting rights or otherwise.

Dividends

Payments made by a corporation to its shareholder members, usually derived from profits.