Chapter 5 Econ Words

Created by Stephloveslove 

Upgrade to
remove ads

21 terms

supply

the amount of goods available. (Affected by the demand. supply of food is always high.)

law of supply

tendency of suppliers to offer more of a good at a higher price. (If prices increase, so does quanitity and vice versa. If the demand for technologies increases, so will the amount and price.)

quanitity supplied

the amount a supplier is willing and able to supply at a certain price. (Sometimes firms can't keep up with the demand because of limited factors.)

supply schedule

a chart that lists how much of a good a supplier will offer at different prices. (know the chart.)

variable

a factor than can change. (price of pizza, and the number of pizza suplied.)

market supply schedule

a chart that lists how much of a good all suppliers will offer at different prices (same chart as supply schedule, just higher numbers.)

supply curve

a graph of the quantity supplied of a good at different prices. (know the graph.)

market supply curve

a graph of the quantity supplied of a good by all suppliers at different prices (same graph, higher numbers.)

elasticity of supply

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

marginal produce of labor

the change in output from hiring one additional unit of labor. (1 person can make 4 bags per hour, a second person raises it goes to 10. The marginal product is 6.)

increasing marginal returns

a level of production in which the marginal product of labor increases as the number of workers increases. (More workers equals more output.)

diminishing marginal returns

a level of production in which the marginal product of labor decreases as the number of workers increases. (If there are a limited number of machines, the business will experience this.)

fixed cost

a cost that does not change, no matter how much of a good is produced. ( Revolve around production of facility; rent, property taxes.)

variable cost

a cost that rises or falls depending on how much is produced. (to produce more beanbags, a company must hire more workers and buy more beans. Cost of labor, electricity, heat.)

total cost

fixed costs plus variable costs. (Could include property taxes and heat cost.)

marginal cost

the cost of producing one more unit of a good. (If a firm produces only one bean bag, then it still has the fixed cost. This can decrease the firms profit.)

marginal revenue

the addition income from selling one more unit of a good; sometimes equal to the price.(The point where marginal cost and revenue meet is the best level of output. Know curve.)

operating cost

the cost of operating a facility, such as a store or factory. (Variable costs.)

subsidy

a government payment that supports a business or market. (Government pays certain industries to underproduce to keep prices low.)

excise tax

a tax on the production or sale of a good. (increases production costs by adding an extra cost, used to discourage sale of goods that could harm the good, like alcohol or cigarettes.)

regulation

government intervention in a market that affects the production of a good. (the government does this to cars to prevent air pollution.)

Please allow access to your computer’s microphone to use Voice Recording.

Having trouble? Click here for help.

We can’t access your microphone!

Click the icon above to update your browser permissions above and try again

Example:

Reload the page to try again!

Reload

Press Cmd-0 to reset your zoom

Press Ctrl-0 to reset your zoom

It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.

Please upgrade Flash or install Chrome
to use Voice Recording.

For more help, see our troubleshooting page.

Your microphone is muted

For help fixing this issue, see this FAQ.

NEW! Voice Recording

Click the mic to start.

Create Set