Suppose You Produce 10 Bikes a Day for a Total

question 261

Multiple Choice

Suppose you produce 10 bikes a day for a total cost of $1,000. Total costs increase to $1,100 when you produce 15 bikes. Finally, total costs increase to $1,300 if you make 20 bikes. A graph showing the relationship between total costs and the number of bikes produced would be

• A) a negatively-sloped line that becomes steeper.
• B) a positively-sloped line that becomes steeper.
• C) a negatively-sloped line that becomes flatter.
• D) a positively-sloped line that becomes flatter.

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Definitions:

Net Exports

Net exports are the difference between a country's total exports of goods and services and its total imports of them, representing the external demand for a country’s goods.

Statistical Discrepancy

The difference between two figures that are supposed to match but do not, often found in economic data due to estimation errors or timing differences.

Current Account

A country's trade balance, plus net income and direct payments, representing the difference between a nation's savings and its investment.

Tourist Expenditures

Amount of money spent by visitors in a country on accommodation, food, transportation, entertainment, and other services and goods.