To Analyze Aggregate Productivity,economists Typically Assume ________

question 36

Multiple Choice

To analyze aggregate productivity,economists typically assume ________.

• A)that the hours each person works varies with the wage rate
• B)that all of the capital and labor in the economy are fully utilized
• C)that output can increase only if inputs have become more productive
• D)all of the above
• E)none of the above

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Definitions:

Tobacco Industry

A sector comprising companies that grow, manufacture, and sell tobacco products.

Equilibrium Price

The market price at which the quantity of goods supplied equals the quantity of goods demanded, leading to market stability.

Positive Externality

A benefit enjoyed by a third-party as a result of an economic transaction they are not directly involved in.

Equilibrium Quantity

The amount of products or services available that matches the amount sought after at the price where supply meets demand.