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 provides good or services is a ______.

Answer 2

producer

Question 3

The two key words in the definition of supply are _____ and _____.

Answer 3

willingness and ability

Question 4

As is true with demand, _____ is a major factor that influences supply.

Answer 4

price

Question 5

_______ states that when prices decrease, quantity supplied decreases, and when prices increases, quantity supplied increases.

Answer 5

The law of supply

Question 6

______ 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 a market.

Answer 6

A supply schedule

Question 7

_______ schedule is 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

A market supply

Question 8

The left-hand column of the table lists various prices of ______.

Answer 8

a good or service

Question 9

The right-hand column shows the quantity supplied at ______.

Answer 9

each price

Question 10

______ is a graph that shows how much of a good or service an individual producer is willing and able to offer for sale at a price.

Answer 10

A supply curve

Question 11

_______ shows the data from the market supply schedule.

Answer 11

A market supply curve

Question 12

________ slope from the lower left-hand corner of the graph to the upper right-hand corner. This is _____ and show that if one value goes up, the other will go up too.

Answer 12

All normal supply curves, a positive slope

Question 13

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

Answer 13

the marginal product

Question 14

Having each worker focus on a particular facet of production is called ________.

Answer 14

specialization

Question 15

_______ shows the relationship between labor and marginal product.

Answer 15

A marginal product schedule

Question 16

_____ returns occur when hiring new workers causes marginal product to increase.

Answer 16

Increasing

Question 17

______ returns occur when hiring new workers causes marginal product to decrease.

Answer 17

Diminishing

Question 18

_____ returns happens when marginal product becomes negative and total output decreases.

Answer 18

Negative

Question 19

The goal of every business is to earn as much ____ as possible.

Answer 19

profit

Question 20

______ are expenses that the owners of a business must incur whether they produce nothing, a little, or alot.
examples are:

Answer 20

Fixed costs, Mortgage, insurance, taxes, interest charges on bond, and depreciation.

Question 21

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

Answer 21

Variable costs, Shipping, hourly wages, electricity to power machines, raw materials.

Question 22

_____ find the total cost of production by adding fixed and variable costs together.

Answer 22

Businesses

Question 23

_____ is the extra cost of producing one more unit.

Answer 23

Marginal costs

Question 24

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

Answer 24

Marginal cost

Question 25

______ is the added revenue per unit of output, or the output, or the money made from each additional unit sold.

Answer 25

Marginal revenue

Question 26

______ is constant.

Answer 26

Marginal revenue

Question 27

______ is the income a business receives from selling a product.

Answer 27

Total revenue