Average variable costs are minimized when:
A. marginal costs begin to increase.
B. marginal costs begin to decrease.
C. marginal cost is greater than average total cost.
D. marginal cost equals average variable cost.
Answer: D
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We should expect the consumption function to shift downward if
a. real interest rates rise. b. price levels fall. c. consumers become more optimistic about future incomes. d. consumers become more pessimistic about future incomes.
Trade creates value by
a. moving goods from people who value the goods less to people who value the goods more. b. permitting trading partners to expand output through specialization in areas where they each have a comparative advantage. c. permitting trading partners to expand output through the adoption of mass production methods. d. all of the above.