To Analyze Aggregate Productivity,economists Typically Assume ________

question 36

Multiple Choice

To analyze aggregate productivity,economists typically assume ________.

• A)that the hours each person works varies with the wage rate
• B)that all of the capital and labor in the economy are fully utilized
• C)that output can increase only if inputs have become more productive
• D)all of the above
• E)none of the above

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Definitions:

Fixed Costs

Costs that do not change with the level of production or sales over a certain period, such as rent or salaries.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Units

Refers to a standard quantity or measurement used for comparison and calculation, such as in physics or mathematics.

Month

A unit of time, approximately 30 days, used as a standard measurement for billing cycles, budgeting, and financial forecasting.