Chapter 3 Flashcards

1
Q

Past expenses

A

Not marginal opportunity cost

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Supply

A

Businesses’ willingness to produce a particular product because price covers all opportunity costs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Rising prices

A

Two incentives for increased quantity supplied

Higher profits and covering higher marginal opportunity costs of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Marginal opportunity cost

A

Additional opportunity cost from the next choice

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Why do increasing marginal costs arise

A

Because inputs are not equally productive in all activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

When is marginal opportunity costs constant

A

When inputs equally productive in all activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Market supply

A

Sum of supplied of all businesses willing to produce a particular product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Law of supply

A

If the price of a product rises quantity supplied increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Supply curve

A

Over and down

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Marginal cost curve

A

Up and over

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

The factors affecting supply

A

Technology

Environment

Prices of input

Prices of related products or services produced

Expected future prices

Number of businesses

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Decrease in quantity supplied

A

Down along unchanged supply curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Increase in quantity supplied

A

Up along unchanged supply curve

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Supply decreases

A

Environmental harms production

Price of input rises

Price of a related product rises

Expected future price rises

Number of businesses decreases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Supply increases

A

Technology improves

Environment change helps production

Price of an input falls

Price of a related product falls

Expected future price falls

Number of business increases

How well did you know this?
1
Not at all
2
3
4
5
Perfectly