What Is a "Structural" Relationship

question 54

Multiple Choice

What is a "structural" relationship?

• A)a relationship that depends on the size of firm investments in capital such as buildings and other structures
• B)a relationship that depends on the basic behavior of consumers and firms and remains unchanged over long periods
• C)a relationship between any two variables that is temporary
• D)any relationship that cannot be anticipated

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Definitions:

Economic Profit

Economic profit is the surplus that remains when total revenue exceeds the total costs, including both explicit and implicit costs.

Explicit Costs

Direct payments made to others in the course of running a business, such as wages, rent, and materials.

Total Revenues

The overall amount of money generated by a business from its sales or services before any costs or expenses are deducted.

Normal Rate

The standard or average rate at which something occurs, such as interest rates, inflation, or unemployment rates.