If Firms Are Producing Below Capacity

question 5

Multiple Choice

If firms are producing below capacity,

• A) it is not possible to increase output
• B) they will charge higher prices to maintain profit levels
• C) resources, especially labor, are in short supply
• D) output can be expanded by hiring extra workers
• E) an increase in aggregate demand will force firms into bankruptcy

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Definitions:

Pelvic Girdle

The structure that attaches the legs to the axial skeleton.

Second Cervical Vertebra

Also known as the axis, it is a bone in the neck that allows the head to rotate.

Process

A series of actions or steps taken to achieve a particular end.

Crest

In anatomy, a crest refers to a prominent ridge or raised surface on the skeleton.