If the marginal cost curve is below the average variable cost curve, then
A) average variable cost is increasing.
B) marginal cost must be decreasing.
C) average variable cost could either be increasing or decreasing.
D) average variable cost is decreasing.
D
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Inrecent years in China, the fraction of the population living below the international poverty line ($1.25 per person per day):
A. fell substantially. B. increased dramatically. C. increased more on average compare toother developing countries. D. fell to zero.
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real GDP and current international transactions in the context of the Three-Sector-Model?
a. Real GDP falls, and current international transactions become more negative (or less positive). b. Real GDP rises, and current international transactions become more negative (or less positive). c. Real GDP falls, and current international transactions rises. d. Real GDP rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Assume the MPC is 0.80. The change in total spending for the economy due to a $200 billion government spending increase is
A. $800 billion. B. $200 billion. C. $1 trillion. D. $160 billion.
During republican presidential administration since 1948, economic growth was highest in ________ year of the administration?
A) first B) second C) third D) fourth