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Chapter 5 Study Guide: Economics
Terms in this set (48)
schedule of quantities offered for sale at all possible prices in a market
tabular listing showing the quantities produced or offered for sale at each and every possible price in the market
graphical representation of the quantities produced at each and every price in the market
law of supply
rule stating that more will be demanded at lower prices and less at higher prices; inverse relationship between price and quantity demanded
amount offered for sale at a given price; point of the supply curve
change in quantity supplied
change in the amount offered for sale in response to price change; movement along the supply curve
change in supply
different amounts offered for sale at each and every price possible; shift of the supply curve
government payment to encourage or protect a certain economic activity
responsiveness of quantity supplied to a change in price
theory of production
deals with the relationship between the factors of production and the output of goods and services
production period so short that only variable inputs can be changed
production period long enough to change the amount of variable and fixed inputs used in production
law of variable proportions
short run output will change as one input is varied while others are held constant
graphical portrayal showing how a change in the amount of a single variable input affects total output
unprocessed natural resources used in production
total production/ output a firm has
extra output due to the addition of one of one more unit of input
stages of production
increasing, decreasing, and negative returns
stages of production where output increases at a decreasing rate as more units of variable inputs are added
cost of production that does not change even through prices rise
broad category of fixed costs that includes interest, rent, taxes, and executive salaries
gradual wear on capital goods during production
production cost that varies as output changes; labor, energy, and raw materials
variable plus fixed cost; all costs associated with production
extra cost of producing one additional unit
total receipts; price of goods sold times quantity sold
extra revenue from the sale of one additional unit of output
decision making that compares the extra cost of doing something to the extra benefits gained
break even point
production needed to recover its costs; production level where total cost equals total revenue
profit-maximizing quantity of output
level of production where marginal cost is equal to marginal revenue
How much to offer for sale
What is the basic decision for a supplier?
Increase in the number of sellers
What would cause the supply curve to shift right?
What is the extra cost incurred by 1 additional unit of a product called?
What is the schedule of quantities that would be offered for sale at all possible prices that could prevail in the market?
If the price of a product increases modestly, and if producers respond with a substantial increase in output, then the supply is what?
What will producers do if the price of a product falls?
The act of producers offering something for sale and how much.
Supply is based on?
The demand curve
The supply curve is a mirror of what image?
Freedom to adjust production
What does the producer have in a market economy?
Firms want to maximize profits produced in what stage of production?
Output of goods and services
The theory of production deals w/ the relationship b/w the factors of production and what?
The gradual WEAR and tear on capital goods
When marginal cost and marginal revenue are equal
Where is the profit maximizing quantity of output found?
Motivation is preformed
When does productivity rise?
What does stage 1 of the production function show?
Taxes go down
When does quantity supplied increase?
Lowers the cost of production and encourages producers to stay in the market
What is the effect of government subsidies?
Fixed and Variable Cost
What does total cost include?
William A. McEachern
957 expert-verified explanations
Principles of Economics
848 expert-verified explanations
Cambridge IGCSE Business Studies
Karen Borrington, Peter Stimpson
467 expert-verified explanations
Explorations in Economics
1,281 expert-verified explanations
THIS SET IS OFTEN IN FOLDERS WITH...
1-20 101 terms
Chapter 1 vocabulary
Chapter 2 Vocabulary
21-40 101 terms
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