Which of the Following Statements Is TRUE in the Short

question 99

Multiple Choice

Which of the following statements is TRUE in the short run?

• A)Generally, labor is a variable input.
• B)Generally, capital is a variable input.
• C)Raw materials are generally considered to be fixed inputs.
• D)Whether or not an input is considered fixed is dependent on the price paid for the input.

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Definitions:

Trade Deficits

A situation in which a country's imports of goods and services exceed its exports, leading to a net outflow of domestic currency to foreign markets.

Industrially Advanced

Refers to countries or regions that have highly developed industries, technology, and infrastructure, contributing to a strong economy.

Comparative Advantage

A person's, corporation's, or country's capability to offer a good or service more efficiently, incurring less opportunity cost than their competitors.

International Trade

The exchange of goods and services between countries, allowing countries to expand their markets and pursue higher efficiency through specialization.