By hedging with futures, buyers and sellers are eliminating basis futures price level risk and assuming level risk.

In the diagram, curves 1, 2, and 3 represent:

A. average variable cost, marginal cost, and average fixed cost respectively.
B. total variable cost, total fixed cost, and total cost respectively.
C. total fixed cost, total variable cost, and total cost respectively.
D. marginal product, average variable cost, and average total cost respectively.

One important consequence of the public debt in the United States is that:

A. incentives to work are increased. B. it transfers a portion of real output to foreign nations. C. there is greater saving at every level of disposable income. D. income inequality is reduced.