The vertical distance between a firm's average total cost curve and its average variable cost curve is its

Answer the following questions true (T) or false (F)

1. As the number of firms in a market decreases, the supply curve will shift to the left and the equilibrium price will fall. 2. If the population increases and input prices increase, the equilibrium price of a product will definitely increase. 3. If the number of firms producing electric cars increases and consumer preference for electric cars increases, the equilibrium quantity of electric cars will definitely increase.

For developing countries, one of the dangers inherent in the inflows of capital that finance investment is

A. increasing unemployment that accompanies foreign investment. B. rapid outflows of funds that put pressure on exchange rates. C. the deflation that accompanies inflows of foreign capital. D. the inflation that accompanies outflows of foreign capital.