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.

---

Definitions:

Career Decisions

The process of making choices related to one's professional path, including selecting jobs, changing fields, or pursuing further education.

Old Career

A traditional career model characterized by long-term employment, linear progression, and loyalty to a single employer.

Discrete Exchange

A transaction that occurs in isolation, where goods, services, or assets are traded between parties without ongoing obligations or relationships.

Occupational Excellence

The achievement of the highest standards of performance within a particular profession or job, often involving continuous improvement and dedication.