Industries in Which Firms Are Enjoying Positive Profits Are Likely

question 222

Multiple Choice

Industries in which firms are enjoying positive profits are likely to ________ in the long run.

• A) expand
• B) contract
• C) neither expand nor contract, as firms must earn an economic profit to stay in business
• D) expand or contract depending on the normal rate of return

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Definitions:

Individual Behavior

Actions or reactions of a person in response to external or internal stimuli.

Thomas Malthus

An 18th-century British economist and demographer known for his theory that population growth will outpace agricultural production, leading to widespread poverty.

Family Planning

Family planning refers to the practices that allow individuals or couples to anticipate and attain their desired number of children and the spacing and timing of their births.

Antibiotics

Medications used to treat bacterial infections by inhibiting the growth of or destroying bacteria, pivotal in the field of medicine for controlling infectious diseases.