Which of the Following Would Increase U.S.GDP

question 65

Multiple Choice

Which of the following would increase U.S.GDP?

• A)The city government of New York buys file cabinets directly from a Mexican company.
• B)A Mexican citizen buys stock in a U.S.company.
• C)A Japanese automobile company produces cars within the U.S.
• D)A U.S.automobile company produces cars in a foreign country.

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Definitions:

AVC

Average Variable Cost, the cost that varies with the level of output, divided by the quantity of output produced.

Total Fixed Cost

The sum of all costs that do not change with the level of output produced; these costs are incurred even if production is zero.

Marginal Cost

The increase in cost resulting from the production of one additional unit of a good.

Variable Cost

Costs that change in proportion to the level of activity or volume of production in a company.