When average total cost is decreasing as output expands:
a. average fixed cost must be increasing
b. average variable cost must be falling.
c. marginal cost must be greater than average total cost.
d. marginal cost must be less than average total cost.
d
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The less bowed the Lorenz Curve, the
A) more equal the income distribution. B) less equal the income distribution. C) greater the number of low-income people. D) greater the number of high-income people.
Suppose there are two countries that are identical in every way with the following exception. Country A is pursuing a fixed exchange rate regime and country B is pursuing a flexible exchange rate regime. Suppose taxes are increased in both countries rises by the same amount. Given this information, we know that
A) the change in output in A will be greater than in B. B) the change in output in B will be greater than in A. C) the change in output will be the same in both countries. D) the relative output effects are ambiguous.