Economics Final Exam
Across
- 1. Law of Demand rule stating that more will be demanded at lower prices and less at higher prices; an inverse relationship between price and quantity demanded
- 3. Costs production cost that varies as output changes; labor, energy, raw materials
- 6. Costs costs of production that do not change when output changes
- 7. situation where quantity supplied is less than quantity demanded at a given price.
- 8. Law of Supply principle that more will be offered for sale at higher prices than at lower prices.
- 9. Maximizing Quantity of Output level of production where marginal cost is equal to marginal revenue (MR=MC)
- 11. Even Point production level where total cost of production equals total revenue; production needed if the firm is to recover its costs.
- 13. situation where quantity supplied is greater than quantity demanded at a given price.
- 15. Supply Curve supply curve that shows the quantities offered at various prices by all firms that sell the same product in a given market
- 17. Possibility Curve/Frontier diagram representing all possible combinations of goods and/or services an economy can produce when all productive resources are fully employed.
- 18. amount of a product a producer or seller would be willing to offer for sale at all possible prices in a market at a given point in time
- 20. market structure in which a few large sellers dominate the market
- 21. Run production period long enough to change amount of variable and fixed inputs used in production
- 22. Marginal Returns stage of production where output increases at a decreasing rate as units of variable input are added
Down
- 1. Costs sum of variable cost plus fixed cost; all costs associated with production
- 2. Competition a market structure characterized by large number of buyers and sellers exchanging identical products
- 4. 3 Stages of Production (Increasing Marginal Returns (Stage I) , Decreasing Marginal Returns (Stage II) , Negative Marginal Returns (Stage III) phases of production that consists of increasing, decreasing and negative returns.
- 5. cost extra or additional cost of producting one additional unit of production
- 10. total fixed cost
- 12. system of allocating goods and services without prices
- 14. government payment to encourage or protect a certain economic activity
- 16. Effect uncompensated side effects that either benefit or harm a third party not involved in the activity that caused it
- 18. Run production period so short that only variable inputs (usually labor) can be changed
- 19. Competition competition based on a product's appearance, quality or design, rather than it's price
- 21. Faire philosophy that government should not interfere with government activity