Average fixed cost
A. decreases steadily as output increases.
B. increases steadily as output increases.
C. exhibits diminishing returns.
D. is a horizontal line.
Answer: A
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John takes 10 minutes to iron a shirt and 20 minutes to type a paper. Harry takes 10 minutes to iron a shirt and 30 minutes to type a paper. Which of the following statements is correct?
a. Harry has a comparative advantage in ironing. b. Harry has a comparative advantage in typing. c. Harry has an absolute advantage in typing. d. Harry has an absolute advantage in ironing. e. Neither can gain from specialization and exchange.
If the government decreases the income tax rate, they assume it will affect which component of GDP?
A. C B. NX C. G D. A change to the income tax rate will not affect any of these components.
Education, public libraries, and museums are examples of
a. public goods b. merit goods c. transfer payments d. subsidies e. cooperative goods
Which of the following is correct?
A) TC = TFC + TVC B) TC = TFC - TVC C) TC = TFC TVC D) TC = TFC / TVC