Scenario 25-1

question 141

Multiple Choice

Scenario 25-1.An economy's production form takes the form Y = AF(L,K,H,N) .
-Refer to Scenario 25-1.K represents the quantity of

• A)human capital only.
• B)physical capital only.
• C)human capital and physical capital combined.
• D)nonrenewable natural resources.

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Definitions:

Equilibrium Price

The price at which the quantity of goods supplied is equal to the quantity of goods demanded; also known as market-clearing price.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services available matches the amount that is demanded.

Inferior Good

An economic term for a good whose demand decreases as the consumer's income increases, contrasting with normal goods.

Equilibrium Quantity

The quantity of goods or services supplied that is equal to the quantity demanded at the market price.