An Assumption on the LRAS Curve Is

question 138

Multiple Choice

An assumption on the LRAS curve is

• A) technology remains unchanged.
• B) an increase in the average price level occurs.
• C) the economy is operating to the right of the production possibilities curve.
• D) labor productivity is increasing.

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Definitions:

FOB Origin Pricing

The “free on board” (FOB) price the seller quotes that includes only the cost of loading the product onto the vehicle and specifies the name of the location where the loading is to occur (seller’s factory or warehouse).

Cost Of Loading

The expenses incurred in the process of loading goods onto a conveyance for transportation, such as labor, equipment, and material handling costs.

Trade-In Allowance

A discount or credit granted for the return of something old when purchasing something new.

List Price

The manufacturer's suggested retail price (MSRP) of a product before any discounts, rebates, or special offers.