A 50% Decrease in Both Inputs and Outputs Is A(n)

question 46

Multiple Choice

A 50% decrease in both inputs and outputs is a(n) :

• A) increase in production with no change in productivity.
• B) increase in productivity.
• C) decrease in production with no change in productivity.
• D) decrease in productivity.

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Definitions:

Price Elasticity

An economic metric indicating the responsiveness of the demand for a product or service to variations in its price.

Peck

A unit of volume for dry goods, historically used in agriculture and equal to about 8.809 or 9 liters in the US and UK respectively.

Bushel

A unit of volume that is used for measuring agricultural commodities, varying in actual volume by the product being measured.

Consumption

The use of goods and services by households or individuals for personal satisfaction or to fulfill needs.