The Long Run Is a Time Period That Is

question 225

Multiple Choice

The long run is a time period that is

• A)five years or longer.
• B)long enough to change the amount of labor employed.
• C)long enough to change the size of the firm's plant and all other inputs.
• D)long enough to change the amount of labor employed but not to change the size of the plant.
• E)None of the above answers describe the long run.

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Definitions:

Scarcity

A fundamental economic problem of having seemingly limitless human wants in a world of limited resources.

Choices

Decisions made by individuals or organizations among two or more alternatives.

Resources

The total means available for economic and political development, such as minerals, labor force, and financial wealth.

Depression

A harsh and long-lasting decline in economic operations, featuring a marked decrease in the GDP, rising unemployment figures, and continued decrease in prices.