The inflation rate is best described as ___.

Which of the following is not correct for an individual firm?

a. If the average variable cost (AVC) is decreasing, average total cost (ATC) must be decreasing. b. AVC reaches minimum before ATC. c. If ATC is increasing, AVC must be increasing. d. If AVC is increasing, marginal cost (MC) is increasing. e. If average fixed cost (AFC) is decreasing, ATC must be decreasing.

Assume, for Japan, that the domestic price of automobiles without international trade is lower than the world price of automobiles. This suggests that, in the production of automobiles,

a. Japan has a comparative advantage over other countries and Japan will import automobiles. b. Japan has a comparative advantage over other countries and Japan will export automobiles. c. other countries have a comparative advantage over Japan and Japan will import automobiles. d. other countries have a comparative advantage over Japan and Japan will export automobiles.