If,under the Gold Standard,the United States Was Importing More from Britain

question 18

Multiple Choice

If,under the gold standard,the United States was importing more from Britain than it was exporting to Britain,price levels in the United States and Britain would,respectively

• A) rise and rise.
• B) remain unchanged and rise.
• C) remain unchanged and fall.
• D) fall and rise.
• E) rise and fall.

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Definitions:

ATC

Average Total Cost, a firm's total cost divided by its total output.

Demand

The quantity of a specific good or service that consumers are willing and able to purchase at different price levels, at a given time.

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit varies with the quantity of output produced, typically upward sloping due to increasing marginal costs.

Average Variable Cost

The total variable cost of production divided by the quantity of output, representing the variable cost per unit of output.