Economics Midterm Terms – Flashcards
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The chart shows the marginal cost of producing apple pies. This chart demonstrates that the marginal cost
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initially decreases as production increases.
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A low trough is indicative of
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a serious depression.
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In a free market system, price controls can include both floors and
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ceilings.
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What do the indicators used by economists reveal about the economy?
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changes in production and demand
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Demand-pull inflation occurs when
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consumers show an interest in purchasing more goods.
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Which of these practices describe how producers in oligopolies generally try to create competition? Check all that apply.
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- by offering promotions - by advertising - by cultivating brand loyalty
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It costs Cool Clothes Company $15 to produce one pair of jeans, but they needed to discontinue production of shirts to focus on jeans. The $15 and discontinuation of shirt production are represented by which of the following sets of terms?
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production cost; opportunity cost
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What is one example of a closed economy?
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a restricted system that blocks trade with international partners
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What is one main objective in the study of economics?
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recognizing the relationship between producers and consumers
