The Time That Is Required to Collect Information About the Current

question 109

Multiple Choice

The time that is required to collect information about the current state of the economy is known as the

• A)recognition time lag.
• B)action time lag.
• C)effect time lag.
• D)fiscal lag.

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Definitions:

Average Variable Cost

The total variable costs of production (costs that change with output level) divided by the quantity of output produced, indicating the variable cost per unit of output.

Average Fixed Cost

The fixed costs of production (those that do not change with the level of output) divided by the quantity of output produced.

Average Total Cost

The cost of producing one unit, calculated by dividing the entire production cost by the quantity of units made.

Average Variable Cost

The variable cost of production (costs that change with the level of output) divided by the number of units produced, showing the variable cost per unit.