Average total cost is
a. the change in cost as output decreases
b. the change in cost as output increases
c. TC / quantity of output
d. MC - TC
e. AVC - AFC
C
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
Which of the following is a property of a typical indifference curve?
a. upward sloping b. bowed away from the origin c. does not intersect another indifference curve d. a higher one is preferred to a lower one
What are market failures? Discuss examples of market failures. What can government do to improve the results of market failures?
What will be an ideal response?
Claudia spends her income on two goods, Blu-ray rentals and chewing gum. She considers both goods to be normal goods. If Claudia's income stays constant and the relative price of Blu-ray rentals increases, she will:
A. rent more Blu-rays and purchase less chewing gum. B. rent more Blu-rays and purchase more chewing gum. C. rent fewer Blu-rays and purchase more chewing gum. D. rent fewer Blu-rays and purchase less chewing gum.