During a Recession,spending on ________ Tends to Fall More Dramatically

question 230

Multiple Choice

During a recession,spending on ________ tends to fall more dramatically than spending on ________.

• A)necessities; luxuries
• B)durable goods; nondurable goods
• C)nondurable goods; durable goods
• D)food; cars

---

Definitions:

Marginal Product

The increase in output that arises from an additional unit of input.

Marginal Revenue

The additional income generated from the sale of one more unit of a product or service.

Marginal Product

Marginal product is the additional output that is produced by adding one more unit of a specific input, holding all other inputs constant.

Optimal Labor Employment

The most efficient allocation of labor resources in a business to maximize productivity and minimize costs.