Which of the Following Statements Is Correct

question 98

Multiple Choice

Which of the following statements is correct?

• A)Evidence strongly suggests that legislatively mandated input combinations have greatly reduced production costs in many industries.
• B)Legislating input combinations in a particular industry can bias the decision making of the firm's managers and lead to higher-than-necessary costs of production.
• C)Legislating input combinations in a particular industry has little or no effect on the decision making of the firm's managers.
• D)Legislating input combinations in a particular industry is preferred to relying on market forces to determine the cost-minimizing combination of inputs to a production process.

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Definitions:

U.S. Newspapers

Print or digital publications in the United States that provide news, analysis, opinion, and features on a variety of topics.

Money Supply

The complete aggregation of monetary assets within an economy at a particular point, including cash, coins, and the funds in checking and savings accounts.

Velocity

The rate at which money circulates within an economy, often measured as the ratio of nominal GDP to the money supply.

Price Level

An index that measures the average relative level of prices of goods and services in an economy over a period of time.