Over a Business Cycle,the Quantities of Capital,human Capital and Entrepreneurial

question 12

Multiple Choice

Over a business cycle,the quantities of capital,human capital and entrepreneurial talent

• A)are constant and do not change.
• B)cycle alongside real GDP.
• C)are completely unpredictable and cannot be forecast.
• D)cycle more than real GDP.
• E)change gradually and do not fluctuate much.

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Definitions:

Production Function

An equation that specifies the output of a firm, an industry, or an entire economy for all combinations of inputs.

Total Cost

The complete cost of production, combining both fixed and variable costs.

Units of Output

measure the quantity of goods or services produced by a firm or industry.

Production Function

An equation that describes the relationship between inputs used in production and the quantity of output that is produced.