Which One of the Following Statements Is MOST Accurate

question 4

Multiple Choice

Which one of the following statements is MOST accurate?

• A) In the long run, foreign output depends only on the available domestic supplies of factors of production.
• B) In the short run, domestic output depends only on the available domestic supplies of factors of production.
• C) In the long run, domestic output depends only on the available domestic supplies of factors of production.
• D) In the long run and in the short run, domestic output depends only on the available domestic supplies of factors of production.
• E) In the long run, domestic output depends only on the real exchange rate.

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Definitions:

Physical Infrastructure

The physical and structural components that support an economy or organization, including roads, bridges, tunnels, water supply, sewers, electrical grids, and telecommunications.

Transportation Networks

Systems of interconnected pathways that facilitate the movement of people, goods, and services from one location to another.

Raw Materials

Basic materials that are used in the production of goods, finished products, or intermediate materials which are feedstock for future finished products.

Shipping By Sea

The process of transporting goods across bodies of water in ships or vessels, a common method for international trade.