Supply

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 or services is a ___

Answer 2

producer

Question 3

The two key words in the definition of supply are ___ and ___

Answer 3

willingness and ability

Question 4

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

Answer 4

price

Question 5

The ___ states that when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increases

Answer 5

law of supply

Question 6

A ___ is a table that shows how much of 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 ___ 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 left-hand column of the table lists various ___ of a good or service

Answer 8

prices

Question 9

The right-hand column shows the ___ at each price

Answer 9

quantity supplied

Question 10

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 10

supply curve

Question 11

A ___ shows the data from the market supply schedule

Answer 11

market supply curve

Question 12

A normal supply curves slope from the lower ___ corner of the graph to the upper ___ corner

Answer 12

left-hand

right-hand

Question 13

This is a ___ slope and show that if one value goes up, the other will go up too

Answer 13

positive

Question 14

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

Answer 14

marginal product

Question 15

Having each worker focus on a particular facet of production is ___

Answer 15

specialization

Question 16

A ___ schedule shows the relationship between labor and marginal product

Answer 16

marginal product

Question 17

Increasing returns occur when hiring new workers cause ___ to increase

Answer 17

marginal product

Question 18

Diminishing returns occur when hiring new workers causes marginal product to ___

Answer 18

decrease

Question 19

Negative returns happens when marginal product becomes negative and total output ____

Answer 19

decreases

Question 20

The goal of every business is to earn as much ___ as possible

Answer 20

profit

Question 21

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

Answer 21

fixed costs

Question 22

What are examples of fixed costs ?

Answer 22

Mortgage 
insurance
taxes
interest charges on bond
depression

Question 23

___are business costs that vary as the level of production output changes

Answer 23

Variable costs

Question 24

What are examples of variable costs?

Answer 24

Shipping
hourly wages
electricity to power machines
raw materials

Question 25

Businesses find the total cost of production by adding ___ costs together

Answer 25

fixed and variable

Question 26

___ is the extra cost of producing one more unit

Answer 26

Marginal cost

Question 27

Marginal cost is determined by dividing change in total ___ by change in total ___

Answer 27

cost | product

Question 28

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

Answer 28

Marginal revenue

Question 29

Marginal revenue is ___

Answer 29

constant

Question 30

___ is the income a business receives from selling a product

Answer 30

Total revenue

Question 31

You determine ___ by subtracting total costs from total revenue

Answer 31

profit

Question 32

At the ___, total costs and total revenue are exactly equal

Answer 32

break-even point

Question 33

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

Answer 33

profit maximizing

Question 34

The different points on a supply curve show changes in ___

Answer 34

quantity supplied

Question 35

Change in quantity supplied is an increase or decrease in the amount of a good or service that producers are willing to sell because of a change in ___

Answer 35

price

Question 36

Notice that as quantity supplied changes, the change is shown by the ___, right or left, along the supply curve

Answer 36

direction of movement

Question 37

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

Answer 37

right

Question 38

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

Answer 38

left

Question 39

Change in ___ occurs when something prompts producers to offer different amounts for sale at every price

Answer 39

supply

Question 40

Six factors cause a change in supply:

Answer 40

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

Question 41

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

Answer 41

Input costs

Question 42

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

Answer 42

Labor productivity

Question 43

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

Answer 43

Technology

Question 44

An ___ is a tax on the production or sale of a specific good or service

Answer 44

excise tax

Question 45

___ are often placed on items such as alcohol and tobacco---things whose consumption the government is interested in discouraging

Answer 45

Excise taxes

Question 46

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

Answer 46

subsidy

Question 47

Most forms of energy production in the US receive some form of ___, the act of controlling business behavior through a set of rules or laws, can affect supply

Answer 47

subsidy Government regulation

Question 48

___ has major impact on supply, as producers enter and leave the market constantly

Answer 48

Competition

Question 49

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

Answer 49

Elasticity

Question 50

The ease of changing ___ to respond to price change is the main factor in determining elasticity of supply

Answer 50

production