Quiz 2

Question 1

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

Answer 1

supply curve

Question 2

A ___________________ shows the data from the market supply schedule

Answer 2

market supply curve

Question 3

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

Answer 3

marginal product

Question 4

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

Answer 4

specialization

Question 5

A ____________________ shows the relationship between labor and marginal product

Answer 5

marginal product schedule

Question 6

_______________ returns occur when hiring new workers cause marginal product to increase

Answer 6

Increasing

Question 7

_________ returns occur when hiring new workers causes marginal product to decrease

Answer 7

Diminishing

Question 8

____________ happens when marginal product becomes negative and total output decreases

Answer 8

Negative returns

Question 9

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

Answer 9

Fixed costs

Question 10

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

Answer 10

Variable cost

Question 11

_____________ is the extra cost of producing one more unit

Answer 11

Marginal cost

Question 12

_______________ is the added revenue per unit of output or the money made from each additional unit sold

Answer 12

Marginal revenue

Question 13

_______________ is the income a business receives from selling a product

Answer 13

Total revenue

Question 14

At the ___________________ total costs and total revenue are exactly equal

Answer 14

break even point

Question 15

The ___________________ is the level of production at which a business realizes the greatest amount of profit

Answer 15

profit maximizing output

Question 16

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 16

quantity supplied

Question 17

Six factors cause a change in supply

Answer 17

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

Question 18

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

Answer 18

Input costs

Question 19

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

Answer 19

Labor productivity

Question 20

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

Answer 20

Technology

Question 21

An _______________ on the production or sale of a specific good or service

Answer 21

excise tax

Question 22

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

Answer 22

subsidy

Question 23

_________________ the act of controlling business behavior through a set of rules or laws can affect supply

Answer 23

Government regulation

Question 24

___________ is also a measure of how responsive producers are to price changes

Answer 24

Elasticity of supply