Economics test 4 Supply

Question 1

What is 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 1

supply schedule

Question 2

What is 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 2

market supply schedule

Question 3

The _____ of the table lists various prices of a good or service.

Answer 3

left-handed column

Question 4

The ______ shows the quantity supplied at each price.

Answer 4

Right-handed column

Question 5

What is 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 5

supply curve.

Question 6

What shows data from the market supply schedule?

Answer 6

market supply curve

Question 7

All normal supply curves slope from the ____ ____ corner of the graph to the ____ _____ corner

Answer 7

lower left

upper right

Question 8

Normal supply curves have a _____ slope and show that if one value goes up the other will ____.

Answer 8

positive

go up too

Question 9

What refers to the willingness and ability of producers to offer goods and services for sale?

Answer 9

supply

Question 10

Anyone who provides goods or services is a ________.

Answer 10

producer

Question 11

The 2 key words in the definition of supply are ___________ and __________.

Answer 11

willingness and ability

Question 12

As is true with demand, _____ is a major factor that influences supply.

Answer 12

price

Question 13

What states that when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increases?

Answer 13

law of supply

Question 14

The change in total product that results in hiring one more worker is called the ______ _______.

Answer 14

marginal product

Question 15

Having each worker focus on a particular facet of production is called _____________.

Answer 15

specialization

Question 16

What shows the relationship between labor and marginal product?

Answer 16

marginal product schedule

Question 17

What occurs when hiring new workers causes marginal product to increase?

Answer 17

increasing returns

Question 18

What occurs when hiring new workers causes marginal product to decrease?

Answer 18

diminishing returns

Question 19

What happens when the marginal product becomes negative and total output decreases?

Answer 19

negative returns

Question 20

What is the goal of every business?

Answer 20

to earn as much profit as possible

Question 21

What are expenses that the owners of a business must incur whether they produce nothing, a little or a lot?

Answer 21

fixed costs

Question 22

What are examples of fixed costs?

Answer 22

• mortgage
• insurance
• taxes
• interest charges on bonds
• depreciation

Question 23

What are business costs that vary as the level of production output changes?

Answer 23

Variable costs

Question 24

What are examples of variable costs?

Answer 24

• shipping
• hourly wages
• electricity to power machines
• raw materials

Question 25

How did businesses find the total cost of production?

Answer 25

fixed costs + variable costs

Question 26

What is the extra cost of producing one more unit?

Answer 26

marginal cost

Question 27

What is determined by dividing change in total cost by change in total product?

Answer 27

marginal cost

Question 28

What is the added revenue per unit output, or the money made from each additional unit sold?

Answer 28

marginal revenue

Question 29

What is constant?

Answer 29

marginal revenue and fixed costs

Question 30

What is the income a business receives from selling a product?

Answer 30

total revenue

Question 31

You determine ____ by subtracting total costs from total revenue?

Answer 31

profit

Question 32

At the break-even point, total _____ and total ______ are exactly equal.

Answer 32

costs and revenue

Question 33

What is the level of production at which business realizes the greatest amount of profit?

Answer 33

profit maximizing output

Question 34

Total Cost equation?

Answer 34

total cost = fixed cost + variable cost

Question 35

marginal cost equation

Answer 35

change in total cost/ change in total product

Question 36

total revenue equation

Answer 36

Marginal revenue X total product

Question 37

profit equation

Answer 37

total revenue - total cost

Question 38

The different points on a supply curve show changes in ______ ________.

Answer 38

quantity supplied

Question 39

Change in _________ __________ is 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 39

quantity supplied

Question 40

As QS changes, the change shown is by _______ ______ _____ (right or left) along the supply curve.

Answer 40

the direction of movement

Question 41

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

Answer 41

right

Question 42

A movement to the ______ shows a decrease in both price and quantity supplied.

Answer 42

left

Question 43

when something prompts producers to offer different amounts for sale at every price, What occurs?

Answer 43

a change in supply

Question 44

What are six factors that cause a change in supply?

Answer 44

- input costs - labor productivity - technology - government actions - producer expectations - number of producers

Question 45

What are the price of the resources needed to produce a good or service?

Answer 45

input costs

Question 46

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

Answer 46

Labor productivity

Question 47

What involves the application of scientific methods and discoveries to production process, resulting in new products or new manufacturing techniques?

Answer 47

technology

Question 48

What is a tax on the production or sale of a specific good or service?

Answer 48

excise tax

Question 49

__________ are often placed on items such as alcohol and tobacco--- things whose consumption the govt is interested in discouraging.

Answer 49

excise taxes

Question 50

What is a govt payment that partially covers the cost of an economic activity?

Answer 50

subsidy

Question 51

Most forms of _______ ________ in the US receive some sort of subsidy.

Answer 51

energy production

Question 52

______ _______, the act of controlling business behavior through a set of rules or laws, can affect supply.

Answer 52

govt regulation

Question 53

What has a major impact on supply, as producers enter and leave the market constantly?

Answer 53

Competition

Question 54

What is a measure of how responsive producers are to price changes?

Answer 54

Elasticity of supply

Question 55

The ease of changing production to respond to price change is the main factor in determining what?

Answer 55

elasticity of supply