Refer to Figure 18-1. Italians cut back on smoking and cut their demand for American cigarettes in half. Assuming all else remains constant, this would be represented as a movement from

Total cost falls when marginal cost is ________, and total cost rises when marginal cost is ________

A) negative; positive B) positive; negative C) zero; negative D) zero; positive

The U.S. economy is experiencing falling output, falling employment, falling incomes and rising unemployment. These conditions best describe a business cycle

A) expansion. B) peak. C) trend. D) recession. E) trough.