Which of the Following Would Tell Us That Resources Are

question 349

Multiple Choice

Which of the following would tell us that resources are NOT flowing to their highest valued uses?

• A) short-run economic profits
• B) short-run economic losses
• C) long-run economic profits
• D) Some firms are just breaking even.

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Definitions:

Complementariness

The characteristic of goods or services that increases their value when used together with other goods or services, enhancing consumer satisfaction or utility.

Substitutability

The degree to which one good or service can be replaced by another in consumption or production, often influencing competition and pricing in markets.

Elasticity of Supply

A measure of how much the quantity supplied of a good or service changes in response to a change in price.

Factor of Production

Inputs used in the production of goods or services, typically categorized into land, labor, capital, and entrepreneurship.