When Comparing the Standard of Living in Two Countries It

question 58

Multiple Choice

When comparing the standard of living in two countries it is important to adjust total output for differences in:

• A)geographic area.
• B)employment levels.
• C)political systems.
• D)population.

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Definitions:

Economies Of Scale

Situation in which output can be doubled for less than a doubling of cost.

Increasing Returns

A situation where the addition of more units of input results in a more-than-proportional increase in output.

Competitive Market

A market structure characterized by many buyers and sellers, such that no single party can dictate the market price.

Long-Run Cost

The total cost of production when all inputs, including both fixed and variable costs, are considered fully adjustable.