Nonactivists Propose Doing Nothing in the Face of Economic Hardship

question 22

Multiple Choice

Nonactivists propose doing nothing in the face of economic hardship because ________.

• A)markets can take quite a bit of time to self-correct
• B)excessive unemployment tends to disappear on its own accord
• C)while households feel the hardship,firms typically benefit
• D)all of the above
• E)none of the above

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Definitions:

Economic Profit

The remaining profit once every cost, including those that are explicit and those that are implicit, is deducted from the total revenue.

Market Price

The current price at which a good or service can be bought or sold in a marketplace, determined by the forces of supply and demand.

Units

Basic quantities or measurements, such as liters, meters, or kilograms, used to specify magnitudes of physical quantities.

Supply Curve

A graph showing the relationship between the price of a good and the amount of the good that suppliers are willing to sell, holding other factors constant.