If People Tried to Produce Most of What They Need

question 175

True/False

If people tried to produce most of what they need on their own, then this would lead to a more efficient use of the economy's resources.Difficulty: 01 Easy
Learning Objective: 02-02 List the main characteristics of the market system.Test Bank: II Topic: Characteristics of the Market System

---

Definitions:

Demand Curve

A graph showing the relationship between the price of a good and the quantity demanded by consumers, typically sloping downward from left to right.

Marginal Revenue

The additional revenue that is generated by selling one more unit of a product or service.

Average Total Cost

The total cost of production (fixed plus variable costs) divided by the total quantity of output produced.

Marginal Cost

Marginal cost is the additional cost incurred in the production of one more unit of a good or service.