Econ 3/16/16 Notes

Question 1

Refers to the willingness and ability of producers to offer goods and services for sale

Answer 1

Supply

Question 2

Anyone who provides goods or services

Answer 2

Producer

Question 3

A major factor that influences supply

Answer 3

Price

Question 4

States that when prices decrease, quantity supplied decreases, and when prices increases, quantity supplied increases

Answer 4

Law of Supply

Question 5

A table that shows how much of a good or service an individual producer is willing and able to offer for sale at each price in a market

Answer 5

Supply Schedule

Question 6

A table that shows how much of a good or service all producers in a market are willing and able to offer for sale at each price

Answer 6

Market Supply Schedule

Question 7

Lists various prices of a good or service

Answer 7

Left-hand column

Question 8

Shows the quantity supplied at each price

Answer 8

Right-hand column

Question 9

A graph that shows how much of a good or service an individual producer is willing and able to offer for sale at each price

Answer 9

Supply Curve

Question 10

Shows the data from the market supply schedule

Answer 10

Market supply curve

Question 11

Slope from the lower left-hand corner of the graph to the upper right hand corner

Answer 11

Normal supply curves

Question 12

The change in total product that results from hiring one more worker

Answer 12

Marginal product

Question 13

Having each worker focus on a particular facet of production

Answer 13

Specialization

Question 14

Shows the relationship between labor and marginal product

Answer 14

Marginal product schedule

Question 15

Occur when hiring new workers cause marginal product to increase

Answer 15

Increasing returns

Question 16

Occur when hiring new workers causes marginal product to decrease

Answer 16

Diminishing returns

Question 17

Happens when marginal product becomes negative and total output decreases

Answer 17

Negative returns

Question 18

Added revenue per unit of output, or the money made from each
additional unit sold

Answer 18

Marginal revenue

Question 19

The income a business receives from selling a product

Answer 19

Total revenue

Question 20

Total costs and total revenue are exactly equal at ______ ____ ______ ?

Answer 20

Break-even point

Question 21

Level of production at which a business realizes the

greatest amount of profit

Answer 21

Profit maximizing output

Question 22

An increase or decrease in the amount of a good or service that producers are willing to sell because of a change in price

Answer 22

Change in quantity supplied

Question 23

Movement to the _____ indicates an increase in both price and quantity supplied.

Answer 23

right

Question 24

Movement to the ____ shows a decrease in both price and quantity

Answer 24

left

Question 25

Six factors cause a change in supply

Answer 25

Input costs, labor productivity, technology, government actions, producer expectations, and number of producers.

Question 26

The price of the resources needed to produce a good or service.

Answer 26

Input costs

Question 27

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

Answer 27

Labor productivity

Question 28

Involves the application of scientific methods and discoveries to the production process, resulting in new products or new manufacturing techniques.

Answer 28

Technology

Question 29

A tax on the production or sale of a specific good or service

Answer 29

Excise Tax

Question 30

A government payment that partially covers the cost of an economic activity

Answer 30

Subsidy

Question 31

The act of controlling business behavior through a set of rules or laws

Answer 31

Government regulation

Question 32

Also a measure of how responsive producers are to price changes.

Answer 32

Elasticity of supply