Assume You Are in the Business of Producing and Selling

question 52

Multiple Choice

Assume you are in the business of producing and selling hamburgers.If you could produce more hamburgers with the same input, what would happen to your productivity and profits assuming the price of your hamburgers remains the same?

• A)increase in productivity, decrease in profits
• B)increase in productivity, increase in profits
• C)decrease in productivity, decrease in profits
• D)decrease in productivity, increase in profits

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Definitions:

1970s

The 1970s is a decade known for significant economic, political, and cultural shifts, including the energy crisis, inflation, and changes in global politics.

Economic Worry

Concern or anxiety about the current or future state of the economy, often due to factors like inflation, unemployment, or recession.

Stock Market

A marketplace where stocks (shares of ownership in businesses) are bought and sold, providing companies with access to capital and investors with a slice of ownership.

Depression

A severe and prolonged downturn in economic activity, characterized by significant decline in GDP, high unemployment, falling prices, and reduced levels of trade and investment.