When the Number of Units Manufactured Increases,the Most Significant Change

question 101

Multiple Choice

When the number of units manufactured increases,the most significant change in average unit cost will be reflected as

• A)an increase in the nonvariable component.
• B)a decrease in the variable component.
• C)a decrease in the nonvariable component.
• D)an increase in the variable component.

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Definitions:

Deposits

Funds placed into an account at a financial institution for safekeeping and to earn interest.

Excess Reserves

Excess reserves are the funds that banks hold over and above the required minimum reserves mandated by central banking regulations, often stored in central banks.

Treasury Bonds

Long-term government securities issued by the U.S. Department of the Treasury. They carry a fixed interest rate and have maturities ranging from 20 to 30 years.

Money Supply

The comprehensive sum of all available financial assets within an economy at a particular time, including cash, coins, and account balances in checking and savings.