While Short-Run Growth Increases Capacity,long-Run Growth Increases Capacity Utilization

question 7

True/False

While short-run growth increases capacity,long-run growth increases capacity utilization.
Short-run efficiency improvements increase capacity utilization,and long-run growth increases capacity.

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Definitions:

Physical Capital

Tangible assets used in the production of goods and services, such as machinery, buildings, and equipment.

Production Possibilities Curve

A graph that shows the different quantities of two goods that an economy can produce using all of its resources efficiently.

Scarcity

Fundamental concept of economics that indicates that there is less of a good freely available than people would like.

Production Possibilities Curve

A graphical representation that shows the maximum combination of goods or services that can be produced with a fixed amount of resources.