When an Industry Expansion Brings About Additional Specialization of Resources

question 70

Multiple Choice

When an industry expansion brings about additional specialization of resources, thus reducing production costs in that industry, we call this

• A)returns from specialization.
• B)external economies of scale.
• C)the law of demand.
• D)decreasing marginal costs.
• E)the law of increasing returns.

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Definitions:

Great Compromise

An agreement reached during the Constitutional Convention of 1787 that established a two-house legislature with proportional representation in the lower house and equal representation of the states in the upper house.

Connecticut Compromise

A key agreement during the drafting of the United States Constitution that balanced representation by giving states equal representation in the Senate and proportional representation in the House of Representatives.

Constitution

The fundamental principles or established precedents according to which a state or other organization is governed.

Anti-federalists

Opponents of the ratification of the U.S. Constitution, fearing that a strong central government would endanger individual liberties and states' rights.