Uncertainty Tends to Keep Resources

question 100

Multiple Choice

Uncertainty tends to keep resources:

• A) in more productive uses.
• B) in less productive uses.
• C) fully employed.
• D) moving from country to country.

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Definitions:

Firm

An organization that produces goods or provides services, usually with the aim of making a profit.

Economic Profit

The difference between the total revenue generated by a business and the total costs, including both explicit and implicit costs.

Minimum Return

The lowest expected or required return on an investment over a specified period.

Long Run

A period of time in which all factors of production and costs are variable, allowing for all adjustments to take place in the analysis of economic conditions.