The Total Cost Curve Generally Has

question 24

Multiple Choice

The total cost curve generally has

• A)slope values which first decrease and then increase rapidly.
• B)slope values which first increase rapidly and then decrease.
• C)increasing slope values.
• D)decreasing slope values.

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Definitions:

Taxes

Compulsory contributions to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions.

Aggregate Demand

The collective call for goods and services in an economy, marked at a certain price level for a given time interval.

Multiplier

The ratio of change in an economic output to a change in an input, such as the increase in public spending leading to a larger increase in the national income.

Consumption Spending

Expenditures by households on goods and services, excluding purchases of new housing.