Which of the following statements is TRUE?
A) Average fixed cost equals average total cost plus average variable cost.
B) Average variable cost is always greater than average fixed cost.
C) Average fixed cost equals total fixed cost divided by total output.
D) Average total cost always falls as output increases.
C
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The table above gives the production possibilities frontier for two countries, Anaconda and Bear. The table shows that
A) Anaconda has a comparative advantage in the production of corn. B) Bear has an absolute advantage in the production of both goods. C) Anaconda achieves production efficiency only at its production point A. D) Bear achieves production efficiency only at its production point A. E) Both answers A and B are correct.
The real rate of interest equals 5% and the expected rate of inflation equals 2%. The nominal rate of interest equals
A) 2%. B) 3%. C) 5%. D) 7%.
A means of measuring quantities of fabric and garments that are being exported or imported.
Planned aggregate expenditure increases when ________ in the income-expenditure model.
A. the government sector is included B. consumption is excluded C. investment is excluded D. the government sector is excluded