Suppose That an Economy Produces 2400 Units of Output, Employing

question 71

Multiple Choice

Suppose that an economy produces 2400 units of output, employing the 60 units of input, and the price of the input is $30 per unit. Refer to the information above. The per-unit cost of production is:

• A) $0.25
• B) $0.50
• C) $0.75
• D) $2.00

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Definitions:

Economic Contractions

Periods where an economy experiences a decline in its general economic activity, often marked by reduced GDP.

Laissez-faire

An economic philosophy of free-market capitalism that opposes government intervention in business affairs.

Economic System

The organized way a society allocates its resources and apportions goods and services in the national community.

Classical Economists

Early economists who theorized that free markets regulate themselves through the laws of supply and demand, advocating for minimal government intervention.