Use the Figure Below to Answer the Following Questions

question 31

Multiple Choice

Use the figure below to answer the following questions.

Figure 11.3.2
-Refer to Figure 11.3.2,which illustrates the short-run average and marginal cost curves.The average variable cost curve is curve

• A)A.
• B)B.
• C)C.
• D)D.
• E)none of the above.

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Definitions:

Economic Growth

An increase in the production of economic goods and services, compared from one period of time to another.

Diminishing Returns

A principle stating that as investment in a particular area increases, the rate of profit from that investment, after a certain point, cannot continue to increase if other inputs remain constant.

Subsistence

The minimum level of essentials (such as food and shelter) necessary for an individual to survive.

Catch-Up Effect

The theory suggesting that less developed countries can grow at a faster rate than developed countries because they can adopt existing technologies and best practices.