As Capacity Utilization in an Economy Rises

question 87

Multiple Choice

As capacity utilization in an economy rises:

• A)firms sell their fixed assets to remain solvent.
• B)the gap between the potential output and actual output widens.
• C)firms reduce their demand for labor.
• D)employment of inputs by firms declines.
• E)firms add more factories and machines and increase output.

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Definitions:

Database

A collection of related files or tables containing data.

Data Hierarchy

A systematic organization of data often in a hierarchical form ranging from bits and bytes up to databases.

Byte

A unit of digital information that most commonly consists of eight bits, representing a single character of data in most computer systems.

Database

An organized collection of structured information, or data, typically stored electronically in a computer system.