An increase in household saving causes consumption to

a. rise and aggregate demand to increase.
b. rise and aggregate demand to decrease.
c. fall and aggregate demand to increase.
d. fall and aggregate demand to decrease.

d

Economics

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Assume a firm is operating at minimum average total cost in the short run. If there is a decrease in output it follows that:

A. Marginal cost increases B. Average fixed cost increases C. Average total cost decreases D. Average variable cost increases

Economics

Exhibit 11-11 Labor wage and cost data Labor Wage TWC MFC10 $       $  50.00 $         11   5.80   12     17.80 13    102.70  14    126.00  15     46.50 In Exhibit 11-11, the wage required to hire 12 employees is equal to:

A. $5.80. B. $6.00. C. $6.50. D. $6.80.

Economics