Which of the Following Costs Can Be Positive When Output

question 127

Multiple Choice

Which of the following costs can be positive when output is zero?

• A) average variable cost
• B) total variable cost
• C) marginal cost
• D) total fixed cost
• E) None of the above because when output is zero there are no costs.

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Definitions:

GDP Devoted To Investment

The portion of the Gross Domestic Product that is spent on investments in capital goods, infrastructure, and other activities to promote economic growth.

Poor Countries

Nations with low levels of economic activity, low per capita income, and generally low standards of living.

Catch-Up Effect

The property whereby countries that start off poor tend to grow more rapidly than countries that start off rich

Economic Growth Rates

The percentage increase in the market value of the goods and services produced by an economy over time, typically measured on an annual basis.