A Declining Dependency Ratio

question 31

Multiple Choice

A declining dependency ratio

• A)requires immediate and permanent increased spending on education and old-age medical expenses.
• B)requires increased spending on education but decreased costs associated with old-age medical expenses.
• C)requires permanently decreased spending on education but temporarily increased costs associated with old-age medical expenses.
• D)permits temporarily decreased spending on education and old-age medical expenses.

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Definitions:

Marginal Cost Curve

A graphical representation showing how the cost to produce one additional unit changes as production increases.

Economic Profit

The total revenue minus explicit and implicit costs; it represents additional income over what could be earned in the next best alternative.

Average Total Cost

This refers to the total cost of production divided by the number of units produced, representing the cost per unit.

Marginal Cost Curve

A graph that shows the relationship between the marginal cost of producing an additional unit of a good or service and the quantity produced.