The Long-Run Aggregate Supply Curve of an Economy Corresponds to

question 63

Multiple Choice

The long-run aggregate supply curve of an economy corresponds to

• A) a point inside the production possibilities curve.
• B) a point outside the production possibilities curve.
• C) a point on the production possibilities curve.
• D) none of the above: there is no relationship between the long-run aggregate supply curve and the production possibilities curve.

---

Definitions:

Per Unit

A term referring to a measurement or cost on an individual item or quantity basis.

Excess Capacity

The situation where a company can produce more than is required to meet the demand, usually indicating underutilization of resources.

Special Order Price

The price at which goods or services are sold under a special order, often differing from standard pricing.

Net Income

The total earnings of a company after subtracting all expenses and taxes from revenue, indicating its profitability.