According to Keynesian Economists,the Key Limitation on Business Production,and Therefore

question 41

Multiple Choice

According to Keynesian economists,the key limitation on business production,and therefore on employment,is the

• A)demand for output produced by business.
• B)rate of growth of the money supply.
• C)price of raw materials.
• D)level of the wage rate for skilled labor.
• E)the level of taxes on incomes and profits.

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Definitions:

Output Level

The amount of product or service that is produced by a company or an economy at a given time.

Isoquants

Curves representing combinations of inputs which yield the same level of output in production theory, illustrating technical substitution and factor combinations.

MRTS

Marginal Rate of Technical Substitution; the rate at which one input must increase when another input decreases to keep output constant.

Labor

A term referring to the human effort, both physical and mental, used in the production of goods and services.