Average variable cost (AVC)
A) is the variable cost divided by the average sales price of the final good.
B) is the variable cost divided by the quantity of output produced.
C) is equal to average fixed cost (AFC) when no output is produced.
D) is always less than average fixed cost (AFC).
B
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When people's incomes increase, the demand for a good increases. The good is called
A) an inferior good. B) a complement. C) a substitute. D) a normal good.
Which of the following would be most likely to improve the standard of living of people in less-developed nations?
a. The development of strong labor unions. b. An increase in foreign investment. c. An increase in the share of the population under 15 years of age. d. Higher tariffs and the imposition of other restraints designed to restrict international trade.
Personal consumption expenditures include
a. all goods that business firms buy b. the purchase prices paid for stocks and bonds by individual households c. the construction of residential housing d. all goods and services bought by households e. the corrected value of housewives' services
a price index is designed to measure
What will be an ideal response?