Economics Final Exam

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Across
  1. 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
  2. 3. Costs production cost that varies as output changes; labor, energy, raw materials
  3. 6. Costs costs of production that do not change when output changes
  4. 7. situation where quantity supplied is less than quantity demanded at a given price.
  5. 8. Law of Supply principle that more will be offered for sale at higher prices than at lower prices.
  6. 9. Maximizing Quantity of Output level of production where marginal cost is equal to marginal revenue (MR=MC)
  7. 11. Even Point production level where total cost of production equals total revenue; production needed if the firm is to recover its costs.
  8. 13. situation where quantity supplied is greater than quantity demanded at a given price.
  9. 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
  10. 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.
  11. 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
  12. 20. market structure in which a few large sellers dominate the market
  13. 21. Run production period long enough to change amount of variable and fixed inputs used in production
  14. 22. Marginal Returns stage of production where output increases at a decreasing rate as units of variable input are added
Down
  1. 1. Costs sum of variable cost plus fixed cost; all costs associated with production
  2. 2. Competition a market structure characterized by large number of buyers and sellers exchanging identical products
  3. 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.
  4. 5. cost extra or additional cost of producting one additional unit of production
  5. 10. total fixed cost
  6. 12. system of allocating goods and services without prices
  7. 14. government payment to encourage or protect a certain economic activity
  8. 16. Effect uncompensated side effects that either benefit or harm a third party not involved in the activity that caused it
  9. 18. Run production period so short that only variable inputs (usually labor) can be changed
  10. 19. Competition competition based on a product's appearance, quality or design, rather than it's price
  11. 21. Faire philosophy that government should not interfere with government activity