Assume a Factory That Currently Employs 25 Workers and Owns

question 43

Multiple Choice

Assume a factory that currently employs 25 workers and owns a factory with 10,000 square feet of floor space is considering doubling the size of its factory.Economists would classify this as:

• A)a short-run decision.
• B)a long-run decision.
• C)neither a short-run nor a long-run decision.
• D)both a short-run and a long-run decision.

---

Definitions:

Incentives

Factors, monetary or otherwise, that motivate individuals or businesses to act in a certain way, typically to achieve certain goals or outcomes.

Society's Welfare

The overall well-being and quality of life of a community or society, often considered in terms of health, happiness, and prosperity.

Efficiency

The degree to which resources are utilized effectively to achieve a goal with minimum waste of time and effort.

Government

The governing body of a nation, state, or community which creates and enforces laws, manages public resources, and regulates societal functions.