Regarding the Issue of Economic Stability, Nonactivists Believe That

question 134

Multiple Choice

Regarding the issue of economic stability, nonactivists believe that

• A) consumption is highly unstable over the business cycle.
• B) the highest possible level of investment must be maintained over all phases of the business cycle.
• C) minor economic disturbances often feed on themselves, leading to severe swings in the business cycle.
• D) the self-correcting properties of a market economy work reasonably well.

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Definitions:

Total Revenue

The total income generated from the sale of goods or services by a company.

Profitable One

An entity or venture that generates income exceeding its costs and expenses, thereby yielding a surplus or profit.

MC > MR

A condition where the marginal cost of producing an additional unit is greater than the marginal revenue gained from selling it, indicating it’s not profitable to increase production.

Profit Maximized

The point at which a firm achieves the highest possible profit, typically by adjusting output levels or prices.