supply and demand part 2

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 a good or service is a ____________

Answer 2

producer*

Question 3

_______ influences supply

Answer 3

*price

Question 4

________states when price decrease, quantity supplied decreases. It has a positive reaction*

Answer 4

law of supply

Question 5

________ 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 the market

Answer 5

supply schedule

Question 6

_________ is a table that shows how much of a good or service all producers in a market are willing to offer for sale at each price

Answer 6

market supply schedule*

Question 7

________is a graph that shows how much of a good or service and individual producer is willing and able to offer for sale

Answer 7

supply curve

Question 8

_____ shows the data from the market supply schedule

Answer 8

market supply curve

Question 9

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

Answer 9

marginal product

Question 10

having each worker focusing on one area of production is ______

Answer 10

specialization*

Question 11

a __________ shows the relationship between labor and marginal product

Answer 11

marginal product schedule

Question 12

________ occur when hiring new workers cause marginal product to increase

Answer 12

increasing returns

Question 13

________occur when hiring new workers cause marginal product to decrease

Answer 13

decreasing returns

Question 14

____________ happens when marginal product becomes negative and total output decreases

Answer 14

negative returns

Question 15

The goal of every business is to earn ________

Answer 15

profits*

Question 16

________ are expenses that do not change

Answer 16

fixed cost*

Question 17

__________ cost that varies as the level of production output changes

Answer 17

variable cost*

Question 18

the extra cost of making another unit is ________ it is determined by dividing change in total cost by change in total product

Answer 18

marginal cost

Question 19

_______is the money made from each unit sold

Answer 19

marginal revenue

Question 20

_______ is the income a business receives from selling a product

Answer 20

total revenue

Question 21

at the ________ total cost and revenue costs are equal

Answer 21

break even point

Question 22

total cost =

Answer 22

fixed cost + variable cost

Question 23

Marginal cost =

Answer 23

change in total product

Question 24

total revenue =

Answer 24

marginal revenue x total product

Question 25

profit =

Answer 25

total revenue - total cost

Question 26

_________ is an increase or decrease in the amount of a good that producers are willing to sell due to change in price

Answer 26

change in quantity supplied

Question 27

_________ occurs when something makes the producers offer different amounts for sale at every price

Answer 27

change in supply

Question 28

six factors that cause a change in supply:

Answer 28

input cost, labor productivity, technology, government actions, producer expectations, number of producers

Question 29

_______ price of something needed to produce a product

Answer 29

input cost

Question 30

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

Answer 30

labor productivity

Question 31

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

Answer 31

excise tax

Question 32

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

Answer 32

subsidy

Question 33

the act of controlling business behavior through a set of rules or laws is _________

Answer 33

government regulations

Question 34

________ has a major impact on supply

Answer 34

competition

Question 35

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

Answer 35

elasticity of supply