All Other Things Being Equal,in the Absence of Public Policy,an

question 25

Multiple Choice

All other things being equal,in the absence of public policy,an economy producing more than its sustainable capacity will eventually

• A) reduce its long run capacity by wearing out its capital and depleting its natural resources
• B) increase its long run capacity to meet the demand
• C) experience wage and price increases and cutbacks in supply until output is at capacity
• D) export the excess output to other countries
• E) exhibit improved technology

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Definitions:

Personal Flaws

Characteristics or attributes of an individual considered as imperfections or shortcomings.

Pessimistic Explanatory Style

A tendency to blame oneself for negative events, believe such events will continue, and think they affect many aspects of life.

Depression

Characterized by an ongoing depressive state or diminished pleasure in everyday activities, this mental disorder severely impacts an individual's life.

Vulnerability

The quality or state of being exposed to the possibility of being attacked or harmed, either physically or emotionally.