Unit 7 Vocabulary: 21-40

Question 1

Fixed Costs

Answer 1

A cost that does not change based on the level of output that a business produces. For example, the mortgage and insurance must be paid regardless of a company making money.

Question 2

Footloose Industry

Answer 2

Industries that can be located anywhere because they do not need to be close to the market or a resource. Example: call centers (outsourcing in India)

Question 3

Fordist Theory

Answer 3

Highly organized and specialized system for organizing industrial production and labor (includes the assembly-line)