Assumptions That Output Is Fixed and Factor Prices Have Adjusted

question 28

Multiple Choice

Assumptions that output is fixed and factor prices have adjusted to reach the level of full employment are:

• A) useful for long-run analysis.
• B) necessary for short-run analysis.
• C) unrealistic to the extent that economists should not make such assumptions.
• D) always true and therefore useful both in the long run and short run.

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Definitions:

Deficiency Diseases

Health conditions that arise due to a lack of essential nutrients in the diet, such as vitamins and minerals, leading to various symptoms and health issues.

Vitamins

Organic compounds essential for normal growth, metabolism, and bodily function, often obtained through diet or supplements.

Vitamin C

An essential nutrient and antioxidant that is necessary for the repair of tissues and enzymatic production of certain neurotransmitters.

Liver Dysfunction

A condition where the liver is unable to perform its normal functions effectively, leading to a range of health issues.