Other Things the Same, If the Capital Stock Increases, Then

question 276

Multiple Choice

Other things the same, if the capital stock increases, then in the long run

• A)both output and prices are higher.
• B)output is higher and prices are lower.
• C)output is lower and prices are higher.
• D)both output and prices are lower.

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Definitions:

Pollution

The presence or introduction into the environment of contaminants or substances that cause harm or discomfort to organisms, including humans.

Beneficiaries

Individuals or groups who receive benefits, typically from a trust, insurance policy, or government program.

External Costs

Costs of a transaction or activity that affect people other than those directly involved in the transaction, not accounted for in the market price.

Competitive Market

A market structure characterized by a large number of firms competing against each other, leading to efficient prices and products.