1. What happens to marginal cost when average cost increases

a) Marginal cost is below average cost b) Marginal cost is above average cost c) Marginal cost is equal to average variable cost d) Marginal cost is equal to average cost

2. Development means economic growth with

a) price stability b) social change c) inflation d) deflation

3. Which one of the following is more effective in controlling prices in the long run?

a) decrease in production b) increase in production c) decrease in the rate of interest d) increase in the rate of employment