Suppose That Real Domestic Output in an Economy Is 20

question 43

Multiple Choice

Suppose that real domestic output in an economy is 20 units,the quantity of inputs is 10,and the price of each input is $4.Answer the following question on the basis of this information. The per-unit cost of production in the economy described is:

• A) $.50.
• B) $1.
• C) $2.
• D) $5.

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Definitions:

Rational Decision Maker

An individual or entity that makes choices by systematically considering all available information and potential outcomes to maximize their benefit or utility.

Stimulus Package

A package of economic measures put together by a government to stimulate a floundering economy, typically through a combination of spending increases and tax reductions.

Economic Downturn

A period of negative growth in an economy, characterized by a decrease in the GDP, employment, and spending.

Inflation

The frequency at which the average pricing for goods and services uplifts, subsequently reducing the power of procurement.