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Flashcards in Supply Deck (27)
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1

______ refers to the willingness and ability of producers to offer goods and services for sale.

Supply

2

Anyone who provides good or services is a ______.

producer

3

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

willingness and ability

4

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

price

5

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

The law of supply

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.

A supply schedule

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.

A market supply

8

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

a good or service

9

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

each price

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.

A supply curve

11

_______ shows the data from the market supply schedule.

A market supply curve

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.

All normal supply curves, a positive slope

13

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

the marginal product

14

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

specialization

15

_______ shows the relationship between labor and marginal product.

A marginal product schedule

16

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

Increasing

17

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

Diminishing

18

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

Negative

19

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

profit

20

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

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

21

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

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

22

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

Businesses

23

_____ is the extra cost of producing one more unit.

Marginal costs

24

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

Marginal cost

25

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

Marginal revenue

26

______ is constant.

Marginal revenue

27

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

Total revenue