Within the Relevant Range

question 32

Multiple Choice

Within the relevant range:

• A)variable cost per unit decreases as production decreases.
• B)fixed cost per unit increases as production decreases.
• C)fixed cost per unit decreases as production decreases.
• D)variable cost per unit increases as production decreases.

---

Definitions:

GDP Deflator

An economic metric that converts the money-value measure of GDP from current prices to constant prices, enabling comparison of economic productivity and real growth over specific periods.

GDP Deflator

An economic metric that converts the money-value measure of GDP to an index for quantity comparison.

Nominal GDP

The total economic value of all finished products and services generated inside a country over a year, evaluated at present market prices.

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country in a given year, expressed in constant prices.