social 12 (econ)- chapter 4 Flashcards
the quantity of goods and services that producers are willing and able to offer at various possible prices during a given time period.
supply
the amount of a good or service that a producer is willing to sell at each particular price.
quantity supplied
producers supply more goods and services when they can sell them at higher prices and fewer goods and services when they must sell them at lower prices.
law of supply
the desire to take money
profit motive
the amount of money remaining after producers have paid all of their costs.
profit
the total cost of materials, labor, and other inputs required in the manufacture of a product.
costs of production
one useful tool that shows the relationship between the price of a good or service and the quantity that producers will supply
supply schedule
shows the relationship between the price of a good or service and the quantity supplied.
supply curve
the degree to which price changes affect the quality supplied.
elasticity of supply
exists when a change in a good’s price has little impact on the quantity supplied.
inelastic supply
nonprice factors that can shift the entire supply curve of a product, instead of simply changing the quantity supplied along the original supply curve.
determinants of supply
a required payment of money to the government to help fund government services.
tax
payments to private businesses by the government
subsidies
rules about how companies conduct business to protect the public
regulations
the amount of goods and services produced per unit of input
productivity
all the product a company makes in given period of time- with a given amount of input
total product
the change in output generated by adding one more unit of input
marginal product
describes the effect that varying the level of an input has on the total and marginal product
law of diminishing returns
include any goods and services used to make a product
costs of production
production costs that do not change as the level of output changes
fixed costs
lessening in value
depreciation
a company’s total fixed costs
overhead
change as the level of output changes
variable costs
the sum of the fixed and variable production costs
total costs
the additional costs of producing one more unit of output
marginal costs
products with elastic supply usually can be made:
- quickly
- inexpensively
- using few, readily available resources
a product usually has inelastic supply if production requires a great deal of:
- time
- money
- resources that are not readily available
the six determinants of supply
- prices of resources
- government tools
- technology
- competition
- prices of related goods
- producer expectations
