If the short-run average variable cost of production for a firm is decreasing, then it follows that
A. average variable cost must be greater than marginal cost.
B. marginal cost must be decreasing.
C. average variable cost must be greater than average fixed cost.
D. average fixed cost must be constant.
Answer: A
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In order for a nation to be able to consume more in the future, it needs to
A) produce less today in aggregate and save the difference between consumption and income. B) produce more today in aggregate and save the difference between consumption and production. C) consume more today in aggregate and borrow the difference between consumption and income. D) consume less today in aggregate and save the difference between consumption and income.
Which of the following measures gives the earliest warning of increasing inflation?
A) the Consumer Price Index B) the Producer Price Index C) the Personal Consumption Expenditure Index D) All of these should signal the same short-run inflation.