Increases in the Natural Level of Output Allow the Economy

question 29

Multiple Choice

Increases in the natural level of output allow the economy to produce _____ goods and services and make people want to buy _____ goods and services.

• A) fewer; fewer
• B) fewer; more
• C) more; more
• D) more; fewer

---

Definitions:

Net Income

The total profit of a company after all expenses, taxes, and costs have been subtracted from total revenues, indicating the company's financial health over a period.

FOB Shipping Point

A term of sale indicating that the buyer is responsible for the goods and the shipping cost as soon as the goods leave the seller's premises.

FOB Destination

A term used in shipping indicating that goods are considered delivered and the seller is responsible for them until they reach the buyer’s location.

Perpetual Inventory System

An inventory management system where updates are made continuously to record sales and purchases in real-time.