The Number of Labor Hours It Takes to Produce One

question 14

Multiple Choice

The number of labor hours it takes to produce one unit of a particular product declines in a predictable manner as the number of units produced increases.Which of the following terms best expresses this idea?

• A)Perceptual maps
• B)Economies of scope
• C)Learning curves
• D)Vector analysis

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Definitions:

Crowding-Out Effect

A situation where increased government spending leads to reduced investment in the private sector, typically because of higher interest rates or the use of available financial resources.

Keynesians

Economists who follow the theories of John Maynard Keynes, emphasizing the role of government intervention and fiscal policy in managing economic cycles.

Monetarists

Economists who suggest that fluctuations in the money supply are key in affecting national output in the short term and in determining the price level over an extended term.

Crowding-Out Effect

The phenomenon where increased government spending leads to a reduction in private sector spending and investment due to higher interest rates or other factors.