Which of the Following Criteria Need Not Be Satisfied for Choosing

question 24

Multiple Choice

Which of the following criteria need not be satisfied for choosing a policy instrument?

• A) The variable must be measurable.
• B) The variable must be controllable.
• C) The variable must be predictable.
• D) The variable must be transportable.

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Definitions:

ATC

Average Total Cost, which is calculated by dividing the total cost by the quantity of output produced.

Economic Profit

The surplus or profit remaining after deducting both explicit and implicit costs, including opportunity costs, from total revenues.

Interest Rate

The percentage charged on a loan or paid on deposits over a specific period of time, often annually.

Economic Profit

The difference between a firm's total revenue and its total costs, including both explicit and implicit costs, reflecting the true profitability of the business.