Supply

Question 1

refers to the willingness and ability of producers to offer goods and services

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 …

Answer 3

willingness and ability

Question 4

what is a major factor that influences supply?

Answer 4

price

Question 5

when prices decrease, the quantity supplied decreases, and when the prices increase, the quantity supplied increases

Answer 5

law of supply

Question 6

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 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

lists various prices of a good or service

Answer 8

left - hand column of the table

Question 9

shows the quantity supplied at each price

Answer 9

right - hand column of the table

Question 10

Price and Quantity Supplied have a …

Answer 10

direct relationship

Question 11

Price and Quantity Demanded have an …

Answer 11

inverse relationship

Question 12

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 12

supply curve

Question 13

shows the data from the market supply schedule

Answer 13

market supply curve

Question 14

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

Answer 14

normal supply curves

Question 15

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

Answer 15

marginal product

Question 16

having each worker focus on a particular facet of production is called …

Answer 16

specialization

Question 17

shows the relationship between labor and marginal product …

Answer 17

marginal product schedule

Question 18

returns occur when hiring new workers causes marginal product to increase

Answer 18

increasing

Question 19

returns occur when hiring new workers causes marginal product to decrease

Answer 19

diminishing

Question 20

returns happens when marginal product becomes negative and total output decreases

Answer 20

negative

Question 21

goal of every business …

Answer 21

to earn as much profit as possible

Question 22

expenses that the owners of a business must incur whether they produce nothing, little, or a lot
Ex.) Mortgage, insurance, taxes, interest charges on bond, and depreciation

Answer 22

fixed costs

Question 23

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

Answer 23

variable costs

Question 24

adding fixed and variable costs together gives you what?

Answer 24

total costs of production

Question 25

the extra cost of producing one more unit

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

Answer 25

marginal costs