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 produces goods and services is a _______

Answer 2

producer

Question 3

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

Answer 3

excise tax

Question 4

A _______ is a table that shows how much of a product an individual is willing and able to offer for sale at each price in a market

Answer 4

supply schedule

Question 5

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 5

supply curve

Question 6

A _____ shows the data from the market supply schedule

Answer 6

market supply curve

Question 7

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

Answer 7

marginal product

Question 8

_______ occurs when hiring new workers causes marginal product to increase

Answer 8

Increasing return

Question 9

______ occurs when hiring new workers causes marginal products to decrease

Answer 9

Diminishing return

Question 10

_______ happens when marginal product becomes negative and total output decreases

Answer 10

Negative return

Question 11

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

Answer 11

Fixed costs

Question 12

______ are business costs that vary as the level of production output changes

Answer 12

Variable costs

Question 13

______ is the extra cost of producing one more unit

Answer 13

Marginal cost

Question 14

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

Answer 14

Marginal revenue

Question 15

_______ is the income a business receives from selling a product

Answer 15

Total revenue

Question 16

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

Answer 16

profit maximizing output

Question 17

A _______ shows the relationship between labor and marginal product

Answer 17

marginal product schedule

Question 18

___________ 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 18

Change in quantity supplied

Question 19

A ________ indicates an increase in both price and quantity supplied

Answer 19

movement to the right

Question 20

Six factors cause a change in supply:

Answer 20

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

Question 21

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

Answer 21

Input costs

Question 22

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

Answer 22

Labor productivity

Question 23

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

Answer 23

Technology

Question 24

A ________ is a table that shows how much of a good or service all producers in a market will offer for sale at each price

Answer 24

market supply schedule

Question 25

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

Answer 25

Excise taxes

Question 26

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

Answer 26

subsidy

Question 27

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

Answer 27

Government regulation

Question 28

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

Answer 28

Competition

Question 29

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

Answer 29

Elasticity of supply

Question 30

The ______ to respond to price change is the main factor in determining elasticity of supply

Answer 30

ease of changing production

Question 31

The ________ states that when prices decrease, so will quantity supplied, and when prices increase, so will quantity supplied

Answer 31

law of supply