Supply : 3/7/16

Question 1

_____ refers to the willingness and ability of producers to offer goods and services for sale.

Answer 1

Supply

Question 2

Anyone who provides goods and services is a p_______.

Answer 2

Producer

Question 3

The two keywords in the definition of supply are w__________ and a______.

Answer 3

Willingness, ability

Question 4

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

Answer 4

Price

Question 5

The ____ of _______ states that when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increases.

Answer 5

Law of supply

Question 6

A s_____ s______ 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 6

Supply schedule

Question 7

A m_____ s_____ s_________ 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 7

Market supply schedule

Question 8

The ____-hand column of the table lists various prices of a good or service.

Answer 8

Left

Question 9

The _____-hand column shows the quantity supplied at each price.

Answer 9

Right

Question 10

A s_____ c_____ 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 10

Supply curve

Question 11

A m______ s_____ c____ shows the data from the market supply schedule.

Answer 11

Market supply curve

Question 12

All n______ s____ c_____ slope from the l____ ____-hand corner of the graph to the u_____ ____-hand corner. This is a p______ slope and show that if one value goes up, the other will go up too.

Answer 12

Normal supply curves, lower left, upper right, positive

Question 13

The change in total product that results from hiring one more worker is called the m________ p______.

Answer 13

Marginal product

Question 14

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

Answer 14

Specialization

Question 15

A m_______ p_______ s_______ shows the relationship between labor and marginal product.

Answer 15

Marginal product schedule

Question 16

I__________ r_____ occur when hiring new workers cause marginal product to increase.

Answer 16

Increasing returns

Question 17

D__________ r_____ occur when hiring new workers cause marginal product to decrease.

Answer 17

Diminishing returns

Question 18

N________ r______ happens when marginal product becomes negative and total output decreases.

Answer 18

Negative returns

Question 19

The goal of every business is to earn as much ______ as possible.

Answer 19

Profit

Question 20

F____ c____ are expenses that the owners of a business must incur whether they produce nothing, little, or a lot. : M_______, i_______, t____, i______ c_____ on b____, and d_________.

Answer 20

Fixed costs, mortgage, insurance, taxes, interest charges on bond, depreciation

Question 21

V______ c____ are business costs that vary as the level of production output changes. : S______, h_____ w_____, e_______ to p____ m______, r__ m________.

Answer 21

Variable costs, shipping, hourly wages, electricity to power machines, raw materials

Question 22

Businesses find the t____ c___ of p_______ by adding f___ and v______ c____ together.

Answer 22

Total cost of production, fixed, variable costs

Question 23

M_______ c____ is the extra cost of producing one more unit.

Answer 23

Marginal cost

Question 24

M_______ c____ is determined by dividing change in total cost by change in total product.

Answer 24

Marginal cost

Question 25

M_______ r_____ is the added revenue per unit of output, or the money made from each additional unit sold.

Answer 25

Marginal revenue

Question 26

M_______ r_____ is c______!

Answer 26

Marginal revenue, constant

Question 27

T_____ r________ is the income a business receives from selling a product.

Answer 27

Total revenue

Question 28

You determine p____ by subtracting t____ c____ from t_____ r______.

Answer 28

Profit, total costs, total revenue

Question 29

At the b_____-____ p____, total c____ and total r_______ are exactly equal!

Answer 29

Break-even point, costs, revenue

Question 30

The p_____ m_______ o_____ is the level of production at which a business realizes the greatest amount of profit.

Answer 30

Profit maximizing output

Question 31

The different points on a supply curve show changes in q______ s______.

Answer 31

Quantity supplied

Question 32

C_____ in q_______ s________ 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 32

Change in quantity supplied

Question 33

Notice that as quantity supplied changes, the change is shown by the d_______ of m_________, right or left, along the supply curve.

Answer 33

Direction of movement

Question 34

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

Answer 34

Right

Question 35

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

Answer 35

Left

Question 36

C_____ in s_____ occurs when something prompts producers to offer different amounts for sale at every price.

Answer 36

Change in supply

Question 37

Six factors cause a change in supply. : I____ c____, l____ p_________, t________, g_________ a______, p________ e_________, and n______ of p_______.

Answer 37

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

Question 38

I____ c____ are the price of the resources needed to produce a good or service.

Answer 38

Input costs

Question 39

L_____ p_________ is the amount of goods and services that a person can produce in a given time.

Answer 39

Labor productivity

Question 40

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

Answer 40

Technology

Question 41

An e_____ t___ on the production or sale of a specific good or service.

Answer 41

Excise tax

Question 42

E_____ t_____ are often placed items such as a______ and t_______– things whose consumption the government is interested is discouraging.

Answer 42

Excise taxes, alcohol, tobacco

Question 43

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

Answer 43

Subsidy

Question 44

Most forms of e_____ p______ in the US receive some form of s_______.

Answer 44

Energy production, subsidy

Question 45

G____________ r_______, the act of controlling business behavior through a set of rules or laws, can affect s_____.

Answer 45

Government regulation, supply

Question 46

C_________ has a major impact on supply, as producers enter and leave the market constantly.

Answer 46

Competition

Question 47

E________ of s_____ is also a measure of how responsive producers are to price changes.

Answer 47

Elasticity of supply

Question 48

The ease of changing production to respond to price change is the main factor in determining e________ of s_____.

Answer 48

Elasticity of supply