Use the above figure. The AFC at output level 20 is
A. $3.00.
B. $10.00.
C. $1.00.
D. $0.50.
Answer: D
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A point inside a production possibilities curve indicates
A) resources are not being used efficiently. B) resources are being used very efficiently. C) opportunity costs are constant. D) an output combination that is unobtainable with the current resource and technology levels
Answer the following statements true (T) or false (F)
1. The GDP excludes the production of services for which no monetary transaction takes place. 2. Corporate profits are included in national income but not in personal income. 3. Interest payments are included in national income but not in personal income. 4. Gross national product measures the current market value of final output produced within a country by both domestic and foreign resources. 5. The GDP implicit price deflators take into account price changes, as well as some changes in the quality of various products.
When the invisible hand is at work,
a. the price system will sometimes give incorrect cost signals to consumers. b. the price system will allocate resources based only on consumer need. c. all prices will be set equal to marginal costs. d. there will be some shortages and surpluses that cannot be avoided.
Though many assets can be used as a store of value, money is a particularly attractive method to store value because
a. it increases in value as prices rise. b. its purchasing power does not decline when prices rise. c. it is the most liquid of all assets. d. it is backed by gold.