Costs that change as output changes are:
A. fixed costs.
B. variable costs.
C. sunk costs.
D. None of the statements is correct.
Answer: B
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Which of the following is NOT directly included in Canadian GDP?
A) bus tickets sold to tourists for a tour bus ride in Montreal B) the purchase of tickets to a Kanye West concert in Montreal C) the sale of tickets to the Vancouver Olympics to U.S. citizens D) gasoline purchased by a tour bus operator in Quebec E) All of the items would be included in Canadian GDP.
When government intervenes in the production process because external benefits exist, it typically attempts
A) to impose a tax on each unit produced. B) to shift the industry's demand curve to the left. C) to shift the industry's demand curve to the right. D) to shift the industry's supply curve to the left.
The Fed initiates a contractionary monetary policy that is correctly anticipated by economic agents in the economy. The result is
A) decreased prices, but no change in real GDP. B) decreased prices and decreased real GDP in the short run, but only decreased prices in the long run. C) decreased real GDP in the short run and decreased prices in the long run. D) decreased real GDP and prices in both the short run and the long run.
The major difference between nominal GDP and real GDP is that
A. real GDP is the absolute value of goods and services and nominal GDP is a relative value. B. real GDP refers to products made in the United States and nominal GDP refers to both exports and imports. C. nominal GDP is the market value and real GDP has been adjusted for inflation. D. real GDP is a relative value and nominal GDP is an absolute value.