Module 2: TERMS- Supply

Question 1

The factor of production that is the stock of non-material elements such as machines, buildings and equipment used to produce goods and services

Answer 1

Capital

Question 2

A type of firm with a legal existence distinct from that of its owners that is managed and operated by a board of directors.

Answer 2

Corporation

Question 3

The factor of production among for-profit firms that is the implementation of an idea of how to use the land, labor and capital to make a profit

Answer 3

Enterprise

Question 4

Out-of-pocket costs actually made for labor, capital and land and natural resources.

Answer 4

Explicit costs

Question 5

Resource few reqyuored to produce and supply goods and services

Answer 5

Factors of production

Question 6

An entity organized for the purpose of producing goods or providing sevoces. Firms can be either for-profit enterprises or non-profit organizations

Answer 6

Firm

Question 7

Expenditures that do not change regardless of the level of production

Answer 7

Fixed costs

Question 8

The situation when people have an incentive to let others pay for a public good and then use the good or receive the service without paying

Answer 8

Free rider program

Question 9

The opportunity cost to the entrepreneur or owner of a for-profit enterprise using personal time and resources and/or personal resources already owned by the firm

Answer 9

Implicit costs

Question 10

The situation when the demand curve is not a straight line but had a different slope for higher and lower prices

Answer 10

Kinked demand

Question 11

The amount of human physical and mental effort used to produce goods and services

Answer 11

Labor

Question 12

All nature, living in lifeless, to induce minerals, used to produce goods and provide

Answer 12

Land and natural resources

Question 13

The economic principle that as price increases quantity supplied

Answer 13

Law of supply

Question 14

A type of firm with the legal existence distinct from that of its owners that is managed and operated by members

Answer 14

Limited liability corporation

Question 15

The change by the change in the quantity of output

Answer 15

Marginal cost

Question 16

The change in revenue when one additional unit of product is sold

Answer 16

Marginal revenue 

Question 17

The value to the firm from a change in one additional input of labor computed as the market price times marginal product

Answer 17

Marginal value 

Question 18

A type of firm organize to supply goods and services for charitable purposes

Answer 18

Non-profit organizations

Question 19

A type of firm of from 2 to 20 partners, who jointly owned a business, sharing profits, and being jointly responsible for any losses

Answer 19

Partnership 

Question 20

The economic principle that firms maximize profits by producing at the output level where marginal revenue is equal to marginal cost

Answer 20

Profit-maximizing rule 

Question 21

OK the difference between the producers ability to supply and the market price

Answer 21

 Producer surplus

Question 22

A cash concept that is the difference between total revenues and total costs

Answer 22

Profit

Question 23

A type of firm owned by a single individual who is fully entitled to the income of the business, and it’s fully responsible for any losses, a business suffers

Answer 23

Proprietorship 

Question 24

A product or service provided by a government to everyone without exclusion

Answer 24

Pure public good

Question 25

A good or service provided by a government, but the individual receiving the gutter services obligated to pay nominal fee

Answer 25

Quasi-public good 

Question 26

The sum of all costs incurred by a firm in producing a certain level of output

Answer 26

Total cost

Question 27

Market price of the product times the quantity of output sold

Answer 27

Total revenue 

Question 28

Expenditures that change with the level of production

Answer 28

Variable costs