Given That Elasticity of Supply Changes Over Time,in the Short

question 55

Multiple Choice

Given that elasticity of supply changes over time,in the short run an increase in demand will generally cause

• A)the price to rise above its long-run equilibrium value.
• B)the price to rise to a level below its long-run equilibrium value.
• C)the quantity exchanged to rise above its long-run equilibrium value.
• D)both price and quantity exchanged to rise above their long-run equilibrium values.
• E)supply to change.

Evaluate the factors contributing to labor productivity differences among economies.

Identify factors that do not directly contribute to the productivity of labor.

Understand the relationship and differences between average product and marginal product of labor.

Analyze the effects of increasing labor use on output, including the conditions under which the law of diminishing returns applies.

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Definitions:

Percentage Change

A mathematical calculation that shows how much a quantity has increased or decreased as a proportion of its previous value, often expressed as a percentage.

National Income

The total value of all goods and services produced by a country's economy over a specific period, including income from abroad, and serving as a measure of economic health.

Indirect Business Taxes

Indirect business taxes are taxes levied on goods and services rather than on income or profits, such as sales tax or value-added tax.

Investment

The allocation of resources, usually financial, into assets with the expectation of generating future profit or income.