Chapter 5: Supply Flashcards Preview

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Flashcards in Chapter 5: Supply Deck (22)
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0
Q

law of supply

A

tendency of suppliers to offer more of a good at a higher price

1
Q

supply

A

the amount of goods available

2
Q

quantity supplied

A

the amount a supplier is willing and able to supply at a certain price

3
Q

supply schedule

A

a chart that lists how much of a good a supplier will offer at different prices

4
Q

variable

A

a factor that can change

5
Q

market supply schedule

A

a chart that lists how much of a good all suppliers will offer at different prices

6
Q

supply curve

A

a graph of the quantity supplied of a good at different prices

7
Q

market supply curve

A

a graph of the quantity supplied of a good by all suppliers at different prices

8
Q

elasticity of supply

A

a measure of the way quantity supplied reacts to a change in price

9
Q

marginal product of labor

A

the chang ein output from hiring one additional unit of labor

10
Q

increasing marginal returns

A

a level of production in which the marginal product of labor increases as the number of workers increases

11
Q

diminishing marginal returns

A

a level of production in which the marginal product of labor decreases as the number of workers increases

12
Q

fixed cost

A

a cost that does not change, no matter how much of a good is produced

13
Q

variable cost

A

a cost that rises or falls depending on how much is produced

14
Q

total cost

A

fixed costs plus variable costs

15
Q

marginal cost

A

the cost of producing one more unit of a good

16
Q

marginal revenue

A

the additional income from selling one more unit of a good; sometimes equal to price

17
Q

operating cost

A

the cost of operating a facility, such as a store or factory

18
Q

subsidy

A

a government payment that supports a business or market

19
Q

excise tax

A

a tax on the production or sale of a good

20
Q

regulation

A

government intervention in a market that affects the production of a good

21
Q

What are some other influences on supply? (2)

A

Future expectation of prices, number of suppliers, and where firms produce