Chapter 5: Supply Flashcards

1
Q

the desire and ability to produce and sell a product

A

supply

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2
Q

when prices decrease, quantity supplied decreases; when prices increase, quantity supplied increases

A

law of supply

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3
Q

lists how much of a good or service an individual producer is willing/able to offer for sale at each price
left side: price
right side: quantity supplied

A

supply schedule

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4
Q

same as a supply schedule, but for all; not just for an individual

A

market supply schedule

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5
Q

shows the data from a supply schedule in graph form
y-axis: price
x-axis: quantity supplied
slopes upward

A

supply curve

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6
Q

shows data from a market supply schedule in graph form

A

market supply curve

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7
Q

the change in total output brought about by adding one more worker

A

marginal product

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8
Q

having a worker focus on a particular aspect of production

A

specialization

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9
Q

occur when hiring new workers causes marginal product to increase

A

increasing returns

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10
Q

occur when hiring new workers causes marginal product to decrease

A

diminishing returns

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11
Q

those that business owners incur no matter how much they produce

A

fixed cost

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12
Q

depend on the level of production output (change)

A

variable cost

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13
Q

the sum of fixed and variable costs

A

total cost

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14
Q

the extra cost of producing one more unit

A

marginal cost

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15
Q

the money made from the sale of each additional unit of output

A

marginal revenue (price)

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16
Q

a company’s income from selling its products

A

total revenue

17
Q

the level of production at which a business realizes the greatest amount of product

A

profit maximizing output

18
Q

a rise or fall in the amount producers offer for sale because of change in price

A

change in quantity supplied

19
Q

occurs when a change in the market place prompts producers to sell different amounts at every price

A

change in supply

20
Q

the price of the resources used to make products

A

input costs

21
Q

the amount of goods and services that a person can produce in a given time

A

labor productivity

22
Q

entails applying scientific methods and innovations to production

A

technology

23
Q

a tax on the making or selling of certain goods or services

A

excise tax

24
Q

a set of rules or laws designed to control business behavior

A

regulation

25
Q

a measure of how responsive producers are to price changes in the marketplace

A

elasticity of supply

26
Q

relation between labor/marginal product

A

marginal product schedule

27
Q

output decreases through crowding, disorganization

A

negative returns

28
Q

price x quantity purchased at that price

A

total revenue

29
Q

comparison of costs/workers/etc.

A

marginal analysis

30
Q

what are the 6 factors of supply?

A
  1. input costs
  2. labor productivity
  3. technology
  4. government action
  5. producer expectations
  6. number of producers
31
Q

price change = larger changer in quantity supplied

A

elastic

32
Q

price change = smaller change in quantity supplied

A

inelastic

33
Q

price and quantity supplied change by same percentage

A

unit elastic

34
Q

what is the main factor that determines elasticity?

A

the ease of changing production