Fixed Resource Prices Help Explain Why Firms

question 15

Multiple Choice

Fixed resource prices help explain why firms

• A)increase output in the short run when the price level increases
• B)keep production levels constant in the short run when the price level decreases
• C)sell output in the short run at fixed prices
• D)increase output in the long run when the price level increases
• E)decrease production when nominal wages fall in the long run

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Definitions:

Urine

A liquid by-product of metabolism in humans and many animals, expelled from the body.

Semen

A fluid containing sperm and other secretions from the male reproductive system, involved in reproduction.

Urethra

The tube that carries urine from the bladder to the outside of the body, and in males, also serves as a conduit for semen.

Vagina

The muscular tube leading from the external genitals to the cervix of the uterus in females, part of the reproductive system.