In Contrast to a Variable Cost

question 97

Short Answer

In contrast to a variable cost
A)The total amount of a fixed cost does not change with activity level.
B)The total amount of a fixed cost increases as activity increases.
C)The per unit amount of a fixed cost does not change with activity level.
D)The per unit amount of a fixed cost increases as activity increases.

• A)The total amount of a fixed cost does not change with activity level.
• B)The total amount of a fixed cost increases as activity increases.
• C)The per unit amount of a fixed cost does not change with activity level.
• D)The per unit amount of a fixed cost increases as activity increases.

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Definitions:

Natural Rate

The unemployment rate at which the economy operates at full employment, where inflation is stable without accelerating.

Unemployment

A situation where individuals who are capable of working and are actively seeking a job are unable to find employment.

Labor Force

The sum of individuals in a country or particular region who have jobs or are actively looking for work.

Inflation Rate

The proportionate escalation in prices for goods and services within an economy during a specified time period.