As It Relates to Economic Growth, the Term Long-Run Trend

question 160

Multiple Choice

As it relates to economic growth, the term long-run trend refers to

• A)the long-run increase in the relative importance of durable goods in the U.S.economy.
• B)the long-term expansion or contraction of business activity that occurs over 50 or 100 years.
• C)fluctuations in business activity that average 40 months in duration.
• D)fluctuations in business activity that occur around Christmas, Easter, and other major holidays.

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Definitions:

Opportunity Cost

The rejection of potential benefits from alternative propositions when favoring one.

Comparative Advantage

The ability of an individual or entity to produce goods or services at a lower opportunity cost than other individuals or entities.

Economic Investment

The expenditure on capital goods used to produce other goods or services in the future, contributing to a country's productive capacity.

Fermentation System

A biological process using microorganisms to convert organic materials into alcohol, gases, or acidic products.