social 12 (econ)- chapter 4

Question 1

the quantity of goods and services that producers are willing and able to offer at various possible prices during a given time period.

Answer 1

supply

Question 2

the amount of a good or service that a producer is willing to sell at each particular price.

Answer 2

quantity supplied

Question 3

producers supply more goods and services when they can sell them at higher prices and fewer goods and services when they must sell them at lower prices.

Answer 3

law of supply

Question 4

the desire to take money

Answer 4

profit motive

Question 5

the amount of money remaining after producers have paid all of their costs.

Answer 5

profit

Question 6

the total cost of materials, labor, and other inputs required in the manufacture of a product.

Answer 6

costs of production

Question 7

one useful tool that shows the relationship between the price of a good or service and the quantity that producers will supply

Answer 7

supply schedule

Question 8

shows the relationship between the price of a good or service and the quantity supplied.

Answer 8

supply curve

Question 9

the degree to which price changes affect the quality supplied.

Answer 9

elasticity of supply

Question 10

exists when a change in a good’s price has little impact on the quantity supplied.

Answer 10

inelastic supply

Question 11

nonprice factors that can shift the entire supply curve of a product, instead of simply changing the quantity supplied along the original supply curve.

Answer 11

determinants of supply

Question 12

a required payment of money to the government to help fund government services.

Answer 12

tax

Question 13

payments to private businesses by the government

Answer 13

subsidies

Question 14

rules about how companies conduct business to protect the public

Answer 14

regulations

Question 15

the amount of goods and services produced per unit of input

Answer 15

productivity

Question 16

all the product a company makes in given period of time- with a given amount of input

Answer 16

total product

Question 17

the change in output generated by adding one more unit of input

Answer 17

marginal product

Question 18

describes the effect that varying the level of an input has on the total and marginal product

Answer 18

law of diminishing returns

Question 19

include any goods and services used to make a product

Answer 19

costs of production

Question 20

production costs that do not change as the level of output changes

Answer 20

fixed costs

Question 21

lessening in value

Answer 21

depreciation

Question 22

a company’s total fixed costs

Answer 22

overhead

Question 23

change as the level of output changes

Answer 23

variable costs

Question 24

the sum of the fixed and variable production costs

Answer 24

total costs

Question 25

the additional costs of producing one more unit of output

Answer 25

marginal costs

Question 26

products with elastic supply usually can be made:

Answer 26

• quickly
• inexpensively
• using few, readily available resources

Question 27

a product usually has inelastic supply if production requires a great deal of:

Answer 27

• time
• money
• resources that are not readily available

Question 28

the six determinants of supply

Answer 28

1. prices of resources
2. government tools
3. technology
4. competition
5. prices of related goods
6. producer expectations