A Firm's Total Output Divided by the Amount of Input

question 42

Multiple Choice

A firm's total output divided by the amount of input used to produce it is the ________ of the input.

• A) cost
• B) supply
• C) average product
• D) marginal product
• E) combined product

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Definitions:

Government Purchases

Expenditures made by the public sector on goods and services, including infrastructure and public safety.

Net Taxes

The total amount of taxes collected by the government minus any transfer payments and subsidies.

GDP

Gross Domestic Product, a measure of the economic performance of a country, evaluating the total value of all goods and services produced over a specific time period.

Government Purchases

Expenditures by government agencies on goods and services that directly satisfy public consumption or are invested in public infrastructure.