Quiz 2 Flashcards
(24 cards)
A ______________ 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
supply curve
A ___________________ shows the data from the market supply schedule
market supply curve
The change in total product that results from hiring one more worker is called the___________________
marginal product
Having each worker focus on a particular facet of production is called ___________
specialization
A ____________________ shows the relationship between labor and marginal product
marginal product schedule
_______________ returns occur when hiring new workers cause marginal product to increase
Increasing
_________ returns occur when hiring new workers causes marginal product to decrease
Diminishing
____________ happens when marginal product becomes negative and total output decreases
Negative returns
______________ are expenses that the owners of a business must incur whether they produce nothing little or a lot
Fixed costs
______________ are business costs that vary as the level of production output changes
Variable cost
_____________ is the extra cost of producing one more unit
Marginal cost
_______________ is the added revenue per unit of output or the money made from each additional unit sold
Marginal revenue
_______________ is the income a business receives from selling a product
Total revenue
At the ___________________ total costs and total revenue are exactly equal
break even point
The ___________________ is the level of production at which a business realizes the greatest amount of profit
profit maximizing output
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
quantity supplied
Six factors cause a change in supply
Input costs, labor productivity, technology, government actions, producer expectations, and number of producers
________________ are the price of the resources needed to produce a good or service
Input costs
__________________ is the amount of goods and services that a person can produce in a given time
Labor productivity
_________________ involves the application of scientific methods and discoveries to the production process resulting in new products or new manufacturing techniques
Technology
An _______________ on the production or sale of a specific good or service
excise tax
A _________ is a government payment that partially covers the cost of an economic activity
subsidy
_________________ the act of controlling business behavior through a set of rules or laws can affect supply
Government regulation
___________ is also a measure of how responsive producers are to price changes
Elasticity of supply
