Chapter 5 Flashcards
1
Q
Law of supply
A
Tendency of suppliers to offer more of a good and a higher price
2
Q
Marginal product of labor
A
The change in output from hiring one additional unit of labor
3
Q
Diminishing marginal returns
A
A level of production in which the marginal product of labor goes down as the number of workers goes up
4
Q
Negative marginal returns
A
An example would be by adding another worker the company makes less money
5
Q
Subsidies
A
A government payment that supports a business or market
6
Q
Taxes
A
A text on production or sale of a good
7
Q
Regulation
A
Government intervention in a market that affects the production of a good
