Refer to Figure 7.1. At output level Q2
A) average fixed cost is increasing.
B) average variable cost equals average fixed cost.
C) marginal cost is negative.
D) average total cost is negative.
E) none of the above
B
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If new manufacturers enter the computer industry, then (ceteris paribus): a. some established manufacturers must exit the industry. b. the equilibrium price of computers must rise
c. the supply curve shifts to the right. d. the supply curve shifts to the left.
If the government announces a new increase in spending with no change in taxes, which of the following would most likely occur?
a. No change in the aggregate demand curve as well as no movement along it b. A leftward shift of the aggregate demand curve c. An upward movement along the aggregate demand curve d. A rightward shift of the aggregate demand curve e. A downward movement along the aggregate demand curve