If Total Production (TP)is Less Than Total Expenditures (TE),it Follows

question 80

Multiple Choice

If total production (TP) is less than total expenditures (TE) ,it follows that

• A) optimum inventory levels fall.
• B) firms have underproduced.
• C) firms increase the quantity of goods they produce.
• D) b and c
• E) a,b,and c

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Definitions:

Conditioned Response

A learned response to a previously neutral stimulus that has been repeatedly presented along with an unconditioned stimulus.

Unconditioned Stimulus

A stimulus that automatically triggers a response without any need for prior learning.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually triggers a conditioned response.

Unconditioned Reinforcer

A stimulus that naturally and automatically triggers a response without any need for learning, such as food for a hungry animal.