The vertical distance between the average total cost curve and the average variable cost curve is:
A. marginal cost.
B. total cost.
C. total fixed cost.
D. average fixed cost.
Answer: D
You might also like to view...
In order for the United States to use discretionary fiscal policy to deal with a recessionary gap,
A) the public must elect members of Congress that understand economics. B) the President's and Congress's economic advisors must agree on the proper government programs to slash. C) the President and Congress must agree on which taxes to hike. D) time must pass in order for Congress to decide what taxes and government programs to change. E) since 2002, the President has been given the authority to make up to a 10 percentage point change in government expenditure programs.
In the absence of a Ricardo-Barro effect, a government budget deficit ________ the demand for loanable funds and ________ investment
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Which of the following will reduce the price level and real output in the short run?
a. an increase in government purchases. b. an decrease in oil prices c. a decrease in the money supply d. technical progress
Expansionary fiscal policy involves
A. a decrease in government spending and/or an increase in taxes. B. only an increase in taxes. C. an increase in government spending and/or a decrease in taxes. D. only a decrease in government spending.