Which of the Following Statements Is True

question 42

Multiple Choice

Which of the following statements is true?

• A) During the 2011 legislative session, it became apparent that the booming state economy had dramatically increased state revenues.
• B) The effects of the Great Recession did not reach Texas, as the state enjoyed surplus revenues.
• C) The legislative session was particularly difficult because the Great Recession had significantly reduced state revenue.
• D) The Texas legislature did not meet in 2011.
• E) Resulting from the effects of the 2011 economic recession, the state budget deficit equals GDP.

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Definitions:

Long-Run Cost

The expenses a firm incurs over a period where all inputs are variable, thus considering the scalability and technology change effects on production costs.

Constant-Cost Industry

An industry in which the cost of production does not change significantly with either an increase or decrease in output levels.

Constant-cost Industry

An industry in which the input prices do not change as the industry's output changes.

Competitive Market

A market structure where multiple firms offer similar or identical products or services, and no single firm can significantly influence market prices.