Mitch Owns a Pet Boarding Kennel

question 74

Multiple Choice

Mitch owns a pet boarding kennel.The monthly payment on the land he purchased for his kennel,the mortgage on his small office building,and his business license are all examples of _____ costs.

• A) marginal
• B) variable
• C) fixed
• D) promotional
• E) demand

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Definitions:

Equation of Exchange

An economic equation that relates the quantity of money, its velocity, and the price level of goods and services to the economy's output of goods and services.

Velocity of Money

The rate at which money is exchanged in an economy, often used to measure the health and vigor of economic activity.

Price Level

A calculation of the average cost of goods and services in an economy at a set point in time.

Nominal GDP

The market value of all final goods and services produced within a country in a specific time period, measured using current prices without adjusting for inflation.