Economists Use Some Familiar Terms in Specialized Ways

question 441

Multiple Choice

Economists use some familiar terms in specialized ways

• A)to make the subject sound more complex than it is.
• B)because every respectable field of study has its own language.
• C)to provide a new and useful way of thinking about the world.
• D)because it was too difficult to come up with new terms.

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Definitions:

U-shaped

A graphical representation describing a situation or relationship that initially decreases, reaches a minimum point, and then increases.

Long-run Average Cost

The cost per unit of output when all factors of production, including capital, are variable and optimized for scale.

Licensed Vendors

Businesses or individuals who have been granted official permission to sell goods or services, often within a particular jurisdiction or for a specific product.

Economic Practice

A system or set of methods followed in the management and administration of economic affairs.