COSTS, PRODUCTION, CONSUMPTIONS AND MARKET Flashcards
Main Factors of production
Economists divide the factors of production into four categories: land, labor, capital, and entrepreneurship
What does the Lorenz curve indicate?
Income Distribution
Explanation: The Lorenz curve is a graphical representation of the distribution of income or of wealth.
An economic condition when there is one buyer and many sellers is called ______
Monopsony
What is the name given to the graph that shows all the combinations of two commodities that a consumer can afford at given market prices and within the particular income level in economic terms?
Budget Line
Which economist gave the theory of Opportunity cost?
Gottfried Haberier
When the output is equal to zero, the variable cost is _______.
Zero
What is the value of all tangible resources such as raw materials and labour that are used in the production process called?
Real Cost
A marketplace in which a final goods or service is bought and sold is called ____.
Product Market
A market structure which is dominated by only a small number of firms is called:
Oligopoly
In Economics, buying an asset in one market and simultaneously selling an identical asset in another market at a higher price is termed as_____.
Arbitrage
Pricing Policy of Minimum support price follows which approach
Cost Plus Approach
The expenses leading to the increment in production capacity are which type of expenses ?
Investment Expenditure
In the context of capital markets , the abbreviation ‘FPO’ stands for:
Follow- on Public Offer
The ‘transformation curve’ is also known as the:
production possibility curve
_____ refers to money that has already been spent and which cannot be recovered.
Sunk Cost
