One Impediment to the Free Flow of Some Factors of Production,especially

question 39

Multiple Choice

One impediment to the free flow of some factors of production,especially in the case of raw materials,is:

• A)political restrictions.
• B)currency risks.
• C)competition.
• D)high transaction costs.

Interpret cost curves, including their shapes, shifts, and the relationships among them in both short and long runs.

Calculate economic cost, including opportunity costs and sunk costs, in decision making.

Understand the impact of changes in production capacity on cost curves and firm's costs.

Apply the concept of user cost of capital and its components in the analysis of capital costs.

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Definitions:

Union Wage Advantage

Union wage advantage refers to the higher wages that unionized workers typically earn compared to their non-union counterparts.

National Output

The total value of all goods and services produced by an economy within a specific period, often measured as Gross Domestic Product (GDP).

Research

The systematic investigation into and study of materials and sources to establish facts and reach new conclusions.

Efficiency Loss

The loss of economic efficiency that can occur when the equilibrium for a good or service is not achieved, leading to potential welfare loss.