Ch 5

Question 0

law of supply

Answer 0

producers offer more of a good as its price increases and less as its price falls

Question 1

the amount of goods available

Answer 1

supply

Question 2

the amount that a supplier is willing and able to supply at a specific price

Answer 2

quantity supplied

Question 3

a chart that lists how much of a good a supplier will offer at various prices

Answer 3

supply schedule

Question 4

a factor that can change

Answer 4

variable

Question 5

a chart that lists how much of a good all suppliers will offer at various prices

Answer 5

market supply schedule

Question 6

a graph of the quantity supplied of a good at various prices

Answer 6

supply curve

Question 7

a graph of the quantity supplied of a good by all suppliers at various prices

Answer 7

market supply curve

Question 8

a measure of the way quantity supplied reacts to a change in price

Answer 8

elasticity of supply

Question 9

the change in output from hiring one additional unit of labor

Answer 9

marginal product of labor

Question 10

a level of production in which the marginal product of labor increases as the number of workers increases

Answer 10

increasing marginal returns

Question 11

a level of production at which the marginal product of labor decreases as the number of workers increases

Answer 11

diminishing marginal returns

Question 12

fixed cost

Answer 12

a cost that does not change, no matter how much of a good is produced

Question 13

variable cost

Answer 13

a cost that rises or falls depending on the quantity produced

Question 14

the sum of fixed costs plus variable costs

Answer 14

total cost

Question 15

marginal cost

Answer 15

the cost of producing one more unit of a good

Question 16

the additional income from selling one more unit of a good; sometimes equal to price

Answer 16

marginal revenue

Question 17

average cost

Answer 17

the total cost divided by the quantity produced

Question 18

the cost of operating a facility, such as a factory or a store

Answer 18

operating cost

Question 19

a government payment that supports a business or market

Answer 19

subsidy

Question 20

a tax on the production or sale of a good

Answer 20

excise tax

Question 21

government intervention in a market that affects the production of a good

Answer 21

regulation

Question 22

revenue

Answer 22

also called gross income, this is the total amount of money a company receives

Question 23

profit

Answer 23

also called net income, this is the total amount of money a company receives less expenses.

Question 24

is elasticity usually greater in the short run or the long run? explain.

Answer 24

greater in the long run because you have a longer time to adjust