The Production of Amounts of Food That Exceed the Basic

question 22

Multiple Choice

The production of amounts of food that exceed the basic subsistence needs of the population is called

• A) surplus production.
• B) agriculture.
• C) pastoralism.
• D) occupational specialization.

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Definitions:

Long-run Equilibrium

A state in which all economic forces such as supply and demand are balanced, and all firms are producing at a level where no new entrants will disrupt the market.

Minimum ATC

The lowest point on the average total cost curve, representing the most efficient scale of production for a firm.

Creative Destruction

A term coined by Joseph Schumpeter to describe the process by which old industries are destroyed and new ones are created as part of the evolution of capitalism.

New Firms

Entrepreneurial ventures that have recently been established in the market.