Chapter 5 Economics Vocabulary and chapter test – Flashcards
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The willingness and ability of a producer to produce and sell a product
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Supply
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states that producers are willing to sell more of a good or service at a higher price than they are at a lower price
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Law of Supply
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A graph that shows data from a supply schedule.
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Supply Curve
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The change in total output that results from adding one more worker
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marginal product
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A situation that occurs when individuals or businesses concentrate their efforts In the areas which they have an advantage for increased productivity and profit.
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specialization
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A situation in which hiring new workers causes marginal product to increase
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Increasing Returns
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A situation in which hiring new workers causes marginal product to grow but at a decreasing rate.
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diminishing returns
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Expenses that business owners occur no matter how much they produce
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fixed cost
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Business costs that vary with the level of production output
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Variable cost
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the sum of fixed and variable cost.
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Total Cost
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The additional cost of producing or using one more unit of a good
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Marginal cost
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the money made from each additional unit sold
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marginal revenue
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the income a business receives from selling its product.
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total revenue
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the application of scientific method and innovations to production
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Technology
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a tax on the production or scale of a specific good or service
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excise tax
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a measure of how responsive producers are to price change
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elasticity of supply
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Relationship between supply and price
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If price goes up so does supply
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Difference between supply schedule and market schedule
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Individual: one individual Market: whole market all goods
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Be able to graph
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Price goes on side
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Cost of production
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Labor
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Factors affecting supply
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Input cost ,labor productivity , technology, government action, producer expectation,number of producers
