Suppose That Consumption Spending Is $3,200 Billion,spending on Durable Goods

question 13

Multiple Choice

Suppose that consumption spending is $3,200 billion,spending on durable goods is $800 billion,and spending on services is $1,800 billion.What does spending on nondurable goods equal?

• A) $5,800 billion
• B) $600 billion
• C) $2,400 billion
• D) $3,200 billion
• E) There is not enough information to answer this question.

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Definitions:

AVC

Average Variable Cost, the per unit cost of variable inputs divided by the total output produced, indicating the variable cost for each unit of output.

ATC

Stands for Average Total Cost, which is the sum of all production costs divided by the quantity of output produced.

Short Run

A period in economics during which some factors of production are fixed, making it impossible for a business to change major production facilities.

Average Fixed Cost

The fixed costs of production divided by the quantity of output produced; it decreases as production increases.