Supply Flashcards
______ refers to the willingness and ability of producers to offer goods and services for sale
supply
anyone who provides goods or services is a ______
producer
as is true in demand ______ has a major influence on supply
price
the ______ states that as the price of a good or service increases the quantity supplied increases and as the price decreases the quantity supplied decreases
Law of Supply
______ 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
supply schedule
______ 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
market supply schedule
______ 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
supply curve
______ shows the data from the market supply schedule
market supply curve
the change in total product that results from hiring one more worker is called the ______
marginal product
having each worker focus on a particular facet of production is called ______
specialization
______ shows the relationship between labor and marginal product
marginal product schedule
______ occur when hiring new workers causes marginal product to decrease
increasing returns
______ happens when marginal product becomes negative and total output decreases
negative returns
What is the goal of every business?
profit
______ are expenses that the owners of a business must incur whether they produce nothing, little or a lot
fixed costs
______ are business costs that vary as the level of production output changes
variable costs
______ is the extra cost of producing one more unit
marginal cost
______ is the added revenue per unit of output, or the money made from each additional unit sold
marginal revenue
______ is the income a business receives from selling a product
total revenue
at the ______ point total cost and total revenue are exactly the same
break-even
______ is the level of production at which a business realizes the greatest amount of profit
profit maximizing point
the different points on a supply curve show changes in ______
quantity supplied
a movement to the right on the supply curve indicates a ______ both in price and quantity supplied
increase
a movement to the left on the supply curve indicates a ______ both in price and quantity supplied
decrease
six factors cause change in supply:
input costs, labor productivity, technology, government actions, producer expectations, and number of producers
______ are the price of the resources needed to produce a good or service
input costs
______ is the amount of goods and services that a person can produce in a given time
labor productivity
______ involves the application of scientific methods and discoveries to the production process, resulting in new products or new manufacturing techniques
technology
______ are often placed on items such as alcohol and tobacco- things whose consumption the government is interested in discouraging
excise taxes
______ is a government payment that partially covers the cost of an economic activity
subsidy
______ the act of controlling business behavior through a set of rules or laws, can affect supply
government regulation
______ has a major impact on supply as producers enter and leave the market constantly
competition
______ is also a measure of how responsive producers are to price changes
elasticity of supply
