What Decreases When It Takes More Resources (Inputs) to Produce

question 33

Multiple Choice

What decreases when it takes more resources (inputs) to produce a given amount of goods and services (outputs) than in the past?

• A) structural unemployment
• B) the business cycle
• C) productivity
• D) inflation

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Definitions:

Average Variable Cost

Average Variable Cost is the variable cost per unit of output, calculated by dividing total variable costs by total output, illustrating how variable costs change with output levels.

Output

The total amount of goods or services produced by a person, machine, factory, country, etc., within a particular time period.

Marginal Product

The additional output generated by employing one more unit of a factor of production.

Output Level

The total quantity of goods and services that a firm or industry produces over a set period.