As Capacity Utilization in an Economy Rises

question 87

Multiple Choice

As capacity utilization in an economy rises:

• A)firms sell their fixed assets to remain solvent.
• B)the gap between the potential output and actual output widens.
• C)firms reduce their demand for labor.
• D)employment of inputs by firms declines.
• E)firms add more factories and machines and increase output.

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Definitions:

Moral Sentiment

An emotional response that informs or is related to one's sense of right and wrong.

Shame

A feeling resulting from the violation of a social norm.

Ethical Subjectivist

The belief that moral judgments are statements of one's feelings or attitudes, and therefore, are neither true nor false.

Right

Morally good, justified, or acceptable; also refers to a legal entitlement or privilege.