Economies of Scale Exist When the

question 52

Multiple Choice

Economies of scale exist when the

• A) total cost of production falls as the output increases.
• B) cost of producing a unit of a good falls as its output decreases.
• C) cost of producing a unit of a good falls as its output increases.
• D) firm uses specialized resources to produce a range of goods and services.

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Definitions:

Indians

Term historically used to refer to the indigenous peoples of the Americas; now considered outdated and replaced with "Native Americans" or "American Indians."

Free Blacks

African Americans who were not enslaved before the abolition of slavery, living in both the Northern and Southern United States.

Panic Of 1837

Beginning of major economic depression lasting about six years; touched off by a British financial crisis and made worse by falling cotton prices, credit and currency problems, and speculation in land, canals, and railroads.

Depression

A severe and prolonged downturn in economic activity characterized by high unemployment, decreased GDP, and reduced consumer spending.