Which of the Following Statements Is NOT True About Economic

question 229

Multiple Choice

Which of the following statements is NOT true about economic growth?

• A) When growth occurs the production possibilities curve shifts outward.
• B) Growth represents an increase in a nation's productive capacity.
• C) Growth is measured as the overall level of real GDP.
• D) Growth generally means that overall the members of the nation are better off materially.

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Definitions:

Profit-maximizing

The method or tactic of modifying output and setting prices to maximize profits.

ATC

It refers to dividing the entire cost of production by the number of units produced to get the Average Total Cost.

AVC

The variable cost for each unit of production, known as Average Variable Cost.

AFC

Stands for Average Fixed Cost, which is the fixed costs divided by the quantity of output produced, illustrating how fixed costs spread over units decrease as quantity increases.