The Clustering of Economic Activity in Time Does NOT

question 108

Multiple Choice

The clustering of economic activity in time does NOT:

• A) make buying and selling more efficient.
• B) induce intertemporal substitution.
• C) eliminate long periods of unemployment.
• D) cause shocks to spread through the economy and through time.

---

Definitions:

Wholesale Cost

The price charged for goods and services when sold in large quantities for resale by the purchaser.

No-swivel Chairs

Chairs designed without the capacity to rotate around their vertical axis, typically fixed in one direction.

Extra Production

Extra production refers to the quantity of goods produced beyond the planned or expected level due to increased demand or efficiency gains.

Proportional Relationship

A relationship between two quantities in which they increase or decrease at the same rate, resulting in a constant ratio or fraction.