In the First Half of 2011,automobile Sales in the United

question 222

Multiple Choice

In the first half of 2011,automobile sales in the United States were lower than they were in the first half of 2010.The decrease in auto sales impacts GDP because new automobiles are counted as ________ when purchased by households and ________ when purchased by businesses.

• A)nondurable goods;durable goods
• B)consumption;investment
• C)investment;consumption
• D)durable goods;nondurable goods

---

Definitions:

Average Total Cost

The total cost of production divided by the number of units produced, giving a per unit cost of production.

Output

The total amount of goods or services produced by a person, machine, or company.

Producing Units

Entities, such as factories or workshops, involved in the manufacture of goods or the provision of services.

Efficient Scale

The level of production at which a firm's average costs are minimized, and efficiency is maximized.