Suppose a Change in Health Care Laws Increases the Cost

question 129

Multiple Choice

Suppose a change in health care laws increases the cost of hiring an employee.We can expect output in the short run to ________ and output in the long run to ________.

• A) be unaffected; be unaffected
• B) decrease; decrease
• C) decrease; be unaffected
• D) decrease; increase
• E) increase; increase

Understand the concept and types of long-term memory.

Recognize the impact of environmental and contextual factors on memory recall.

Distinguish between implicit and explicit memory.

Understand the concepts of retroactive and proactive interference, and how they affect memory recall.

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Definitions:

Long-run Equilibrium

A state in which all factors of production and costs are variable, allowing firms to make adjustments, resulting in no economic profit in perfect competition.

Excess Capacity

Refers to the situation where a firm produces at a level less than its potential output, leading to underutilized resources.

Short Run

A period of time in which at least one input (typically capital) is fixed, affecting the firm's capacity to adjust its production levels.

Efficient Use

The optimization of resources to achieve the highest possible output or benefit with the least amount of input or waste.