The Relationship Between Average and Marginal Variables Can Be Stated

question 219

Multiple Choice

The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,

• A) the average is increasing.
• B) the average is decreasing.
• C) the marginal is increasing.
• D) the marginal is decreasing.
• E) the total is decreasing.

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Definitions:

Coordinating Mechanism

A system or process used to organize and harmonize different activities or parties so that they work together efficiently towards a common goal.

Laissez-Faire Economies

Economic systems in which transactions between private parties are free from government intervention such as regulations, privileges, tariffs, and subsidies.

Command Economies

Economic systems where government decisions rather than market mechanisms primarily dictate production, allocation, and prices of goods and services.

Laissez-Faire Economy

A market system in which private-party transactions are conducted without the interference of government actions like regulations, privileges, tariffs, and subsidies.