Refer to Figure 7.1. At output level Q1
A) marginal cost is falling.
B) average total cost is falling.
C) average variable cost is less than average fixed cost.
D) marginal cost is less than average total cost.
E) all of the above
E
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Which of the following is not a reason to be cautious about using GDP as an indicator of development?
a. Developing countries may not have many statisticians. b. GDP includes the value of harmful products. c. Many goods and services are exchanged for others and are not recorded as having a specific value. d. Traditional methods of comparing countries' GDP data have numerous statistical weaknesses. e. All of the above are reasons for caution.
Inflation in the U.S. economy tends to be:
A. a finite, one-time event resulting from a shock. B. ongoing, as increases in aggregate demand generally exceed the increases in aggregate supply. C. a finite, one-time event as the Fed actively works to eliminate all inflation. D. ongoing, as aggregate supply is continually shifting to the left.