The Basic Difference Between the Short Run and the Long

question 28

Multiple Choice

The basic difference between the short run and the long run is that

• A)all costs are fixed in the short run, but all costs are variable in the long run.
• B)the law of diminishing returns applies in the long run but not in the short run.
• C)at least one resource is fixed in the short run, while all resources are variable in the long run.
• D)economies of scale may be present in the short run but not in the long run.

---

Definitions:

Spearman's "g" Factor

A theory proposing that a general intelligence factor underlies all cognitive abilities, measurable by performance on various tasks.

Intellectual Ability

The capacity to think abstractly, reason, understand complex ideas, learn quickly and from experience, and solve problems.

Specialized Intellectual Abilities

Particular cognitive skills that are highly developed or honed in specific areas, such as mathematical reasoning or linguistic talent.

"g" Factor

A theory suggesting that a general intelligence factor underlies all cognitive abilities, significantly influencing performance on various intellectual tasks.