Average fixed cost:
a. can be calculated by dividing total fixed cost by the level of output produced
b. can be graphed as a horizontal line, with dollars on the vertical axis and quantity on the horizontal axis.
c. decreases as output increases.
d. is characterized by both a. and c.
d
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Nations would gain from trade if a(n) _________ exists
a. absolute advantage b. exchange rate c. specialization d. comparative advantage e. terms of trade
If a country had a trade surplus of $50 billion and then its exports rose by $30 billion and its imports rose by $20 billion, its net exports would now be
a. $0 billion. b. $20 billion. c. $40 billion. d. $60 billion.
For the U.S. economy, which of the following helps explain the slope of the aggregate-demand curve?
a. An increase in the price level decreases the interest rate. b. An increase in the price level increases the interest rate. c. An increase in the money supply decreases the interest rate. d. An increase in the money supply increases the interest rate.
Information products (e.g., software)
A. have relatively high fixed costs and relatively high marginal and average variable costs. B. have relatively high fixed costs but low marginal and average variable costs. C. have relatively low fixed costs but high marginal and average variable costs. D. have relatively low fixed costs and relatively low marginal and average variable costs.