The U.S.business Cycle Record,in Common with Most,has

question 39

Multiple Choice

The U.S.business cycle record,in common with most,has

• A)peaks lasting longer than troughs.
• B)troughs lasting longer than peaks.
• C)recessions lasting longer than expansions.
• D)expansions lasting longer than recessions.

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Definitions:

Increasing-Cost Industry

An industry in which the costs of production increase as more firms enter the market, typically due to limitations in resources.

Decreasing-Cost Industry

An industry in which the average cost of production decreases as the industry grows and output increases.

Decreasing Returns to Scale

A situation in which a proportional increase in all inputs leads to a less than proportional increase in output, indicating reduced efficiency as scale of production expands.

Long-Run Equilibrium

A state in which all factors of production and inputs can be adjusted by firms, leading to a situation where no firm has an incentive to change its output or production method.