In Which Industry or Sector of the Economy Is Output

question 103

Multiple Choice

In which industry or sector of the economy is output least likely to be affected by the business cycle?

• A)housing construction
• B)automobile production
• C)agricultural commodities
• D)capital goods production

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Definitions:

Price Elasticity

The examination of demand sensitivity to price modifications of a particular good.

Perfectly Elastic

A state of demand or supply in which the quantity demanded or supplied changes infinitely in response to any change in price.

Constant Price

An economic term that refers to prices that have been adjusted for inflation, allowing for comparison of purchasing power over time.

Uniform Price

A pricing strategy where goods or services are sold at the same price to all customers, regardless of the quantity purchased.