Multiple Choice
Which two factors contributed most to the growth of the cattle business in the United States during the late 19th century?
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0. Basic Principles of Economics
Factors of Production
Multiple Choice
Which term refers to variables in an economy that cause a change in price or supply and demand?
A
Determinants
B
Fixed costs
C
Externalities
D
Marginal utilities
Verified step by step guidance1
Understand that in microeconomics, variables that influence the price or the quantity supplied and demanded in a market are called 'determinants'.
Recognize that 'fixed costs' refer to costs that do not change with the level of output and are not directly related to price or demand shifts.
Know that 'externalities' are side effects or consequences of economic activities that affect third parties, not the direct causes of price or supply and demand changes.
Understand that 'marginal utility' relates to the additional satisfaction a consumer gains from consuming one more unit of a good, which influences demand but is not the general term for variables causing price or supply and demand changes.
Conclude that the correct term for variables causing changes in price or supply and demand is 'determinants', as they encompass factors like income, tastes, prices of related goods, and production costs.
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