Econ Vocab 5 Flashcards
Supply
the willingness and ability of producers to offer goods and services for sale
Law of Supply
states that producers are willing to sell more of a good or service at a higher price than they are at a lower price
Supply schedule
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
Market Supply Schedule
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
Supply curve
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
Market supply curve
shows how much of a good or service all of the producers in a market are willing and able to offer for sale at each price
Marginal product
the change in total product that results from hiring one more worker
Specialization
having each worker focus on a particular facet of production
Increasing returns
meaning each new worker adds more to total output than the last, as shown by the marginal product
Diminishing returns
each new worker causes total output to grow but at a decreasing rate
Fixed costs
expenses that the owners of a business must incur whether they produce something
Variable costs
business costs that vary as the level of production output changes
Total cost
adding fixed and variable costs together.
Marginal cost
additional cost of producing one more unit of their product
Marginal revenue
the added revenue per unit of output, or the money made from each additional unit sold
Total revenue
the income a business receives from selling product
Profit-maximizing output
reaching to the level of production where it is realized that the greatest of profit
Change in quantity supplied
an increase or decrease in the amount of a good or service that producers are willing to sell because of a change in price
Change in supply
occurs when something prompts producers to offer different amounts for sale at every price
Input costs
the price of the resources needed to produce a good or service
Labor productivity
the amount of goods and services that a person can produce in a given time
Technology
involves the application of scientific methods and discoveries to the production process, resulting in new products or new manufacturing techniques.
excise tax
a tax on the production or sale of a specific good or service
(government) regulation
the act of controlling business behavior through a set of rules or laws, can also affect supply
Elasticity of supply
a measure of how responsive producers are to price changes
