Supply

Question 1

Two key words in supply definition

Answer 1

willingness and ability

Question 2

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

Answer 2

Supply

Question 3

Anyone who provides goods and services is a

Answer 3

Producer

Question 4

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

Answer 4

Price

Question 5

states that when prices decrease, quantity supplied decreases, and when prices increases, quantity supplied increases.

Answer 5

law of supply

Question 6

is a table that shows how much of a good or derice an individual is willing and able to offer for sale at each price in a market

Answer 6

market schedule

Question 7

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 7

supply schedule

Question 8

shows the quantity supplied at each price

Answer 8

right hand column

Question 9

of the table lists various prices of a good or service.

Answer 9

left hand column

Question 10

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

shows the data from the market supply schedule

Answer 11

market supply curve

Question 12

slope from the lower left-hand corner of the graph to the upper right hand corner

Answer 12

normal supply curves

Question 13

shows that if no one value goes up, the other will go up too.

Answer 13

positive slope

Question 14

Q2-Q1/((Q2+Q1)/2)

P2-P1/((P2+P1)/2)

Answer 14

mid-pt. formula

Question 15

fixed costs+variable costs

Answer 15

Total Costs

Question 16

change in total cost/change in total product

Answer 16

Marginal Costs

Question 17

total revenue-total cost

Answer 17

profit

Question 18

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

Answer 18

marginal product

Question 19

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

Answer 19

specialization

Question 20

occur when hiring new workers causes marginal product to increase

Answer 20

Increasing returns

Question 21

occur when hiring new workers causes marginal product to decrease.

Answer 21

Diminishing returns

Question 22

happen when marginal product becomes negative and total output decreases.

Answer 22

Negative returns

Question 23

shows the relationship between labor and marginal product.

Answer 23

marginal product schedule

Question 24

The goal of every business is to

Answer 24

earn as much profit as possible.

Question 25

• are expenses that the owners of a business must incur whether they produce little or a lot
• Mortgage, insurance, taxes, interest charges on bond, and deprecation.

Answer 25

Fixed costs

Question 26

business costs that vary as the level of production output changes
Shipping, hourly wages, electricity to power machines, raw materials.

Answer 26

Variable costs

Question 27

Businesses find the ____ by adding fixed and variable costs together

Answer 27

total cost of production

Question 28

• extra cost of producing one more unit.

* determined by dividing change in total cost by change in total product

Answer 28

Marginal cost

Question 29

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

Answer 29

Marginal revenue

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 ______ is the level of production at which a business realizes the greatest amount of profit.

Answer 33

profit maximizing output

Question 34

The different points on a supply curve show changes in ___.

Answer 34

`quantity supplied

Question 35

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 35

demand supplied

Question 36

Notice that as the quantity supplied changes, the change is shown by the direction of movement, ____ , along the supply curve.

Answer 36

right or left

Question 37

A movement to the right indicates an ____ in both price and quantity supplied.

Answer 37

increase

Question 38

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

Answer 38

left

Question 39

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

Answer 39

Changes in supply

Question 40

Input costs, labor productivity, technology, gov. Actions, producer expectations, and number of producers.

Answer 40

Six factors cause a change in supply:

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 or services that a person can produce in a given time.

Answer 42

Labor productivity

Question 43

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

Answer 43

excise tax

Question 44

are often placed on items such as alcohol and tobacco— Things whose consumption the government is interested in discouraging.

Answer 44

Excise taxes

Question 45

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

Answer 45

subsidy

Question 46

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

Answer 46

Government regulation,

Question 47

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

Answer 47

Competition

Question 48

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

Answer 48

Elasticity of supply

Question 49

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

Answer 49

elasticity of supply.