The Council of Economic Advisers

question 55

Multiple Choice

The Council of Economic Advisers

• A)was created in 1776 and consists of three members and a staff of several dozen economists.
• B)was created in 1776 and consists of thirty members and a staff of a dozen economists.
• C)was created in 1946 and consists of three members and a staff of several dozen economists.
• D)was created in 1946 and consists of thirty members and a staff of a dozen economists.

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Definitions:

Average Total Cost

Average total cost is the total cost of production divided by the total quantity produced, representing the cost per unit of output.

Economic Profits

The difference between a firm's total revenues and its total costs, including both explicit and implicit costs, indicating surplus beyond the normal profit level.

Demand Curves

Graphical representations that show the relationship between the price of a good or service and the quantity demanded by consumers.

Industry Entry

The process by which new competitors join an industry, often bringing innovation or increased competition.