In the figure above, which movement could be the result of the development of a new, more efficient refining technology?

A negative balance in the capital and financial account means the economy is

A) lending to the rest of the world. B) running a capital account surplus. C) borrowing from the rest of the world. D) importing more than it is exporting.

When a firm chooses to shutdown, it is

A. making a good decision as long as the price it is getting is less than its average total costs. B. making a good decision as long as the price it is getting is less than its average variable costs. C. making a poor decision because it should always produce where marginal cost equals marginal revenue. D. making a poor decision because it should always produce where average costs exceed average revenue.