Which of the Following Statements,if Any,is Correct for a Nation

question 196

Multiple Choice

Which of the following statements,if any,is correct for a nation that is producing only consumer and capital goods?

• A) Other things equal,the more consumer goods a nation produces,the greater will be its future growth rate.
• B) Other things equal,the more capital goods a nation produces,the greater will be its future growth rate.
• C) There is no general relationship between the current division of output between consumer and capital goods and the future growth rate.
• D) None of these statements is correct.

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Definitions:

Marginal Costs

The hike in total financial outlay required for the fabrication of one additional unit of a product or service.

Variable Costs

Costs that change in proportion to the level of production or business activity, such as raw materials and direct labor expenses.

Average Total Cost

The total cost of production divided by the quantity of output produced.

Total Cost

The complete cost of production, including both fixed and variable costs, incurred by a firm in producing and selling a certain amount of a good or service.