The Result of the National Performance Review Was That the Size

question 54

Multiple Choice

The result of the National Performance Review was that the size of the federal workforce

• A)was reduced by about 60 percent.
• B)was reduced by about 35 percent.
• C)was reduced by about 10 percent.
• D)did not really change at all.

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Definitions:

AFC

Average Fixed Cost, which is the fixed cost of production divided by the quantity of output produced, illustrating how fixed costs dilute over larger production volumes.

AVC

AVC stands for Average Variable Costs, referring to the total variable costs of production divided by the quantity of output produced, indicating how variable costs per unit change with output levels.

ATC

The cost per unit of output, calculated by dividing the total costs (both fixed and variable) by the total quantity produced; identical to Average Total Cost.

MC

Marginal Cost; the change in total production cost that arises when the quantity produced is incremented by one unit.