Refer to Figure 11-4. What happens to the average fixed cost of production when the firm increases output from 150 to 200?
A) It could rise or fall depending on what happens to total cost.
B) It rises.
C) It falls.
D) It remains constant.
C
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In the figure above, which of the following is true?
i. Governments coordinate economic activities of households and firms. ii. Governments buy goods and services in goods markets. iii. Households pay taxes directly to firms. A) only ii B) only i C) only iii D) i and ii E) ii and iii
Usually, increased government spending for war increases inflationary pressures. The principal reason that inflation occurred during the Vietnam War and not during World War II was the existence, during World War II, of
a. full employment. b. government ownership of factories. c. full production. d. wage and price controls. e. high levels of patriotism.