Economics Chapter 5 – Flashcards
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Supply
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the amount of goods available
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Law of Supply
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tendency of suppliers to offer more of a good at a higher price
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Quantity Supplied
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the amount of a supplier is willing and able to supply at a certain price
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Supply Schedule
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a chart that lists how much of a good a supplier will offer at different prices
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Variable
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a factor that can change
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Market Supply Schedule
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a chart that lists how much of a good all suppliers will offer at different prices
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Supply Curve
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a graph of the quantity supplied of a good at different prices
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Market Supply Curve
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a graph of the quantity supplied of a good by all suppliers at different prices
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Elasticity of Supply
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a measure of the way quantity supplied reacts to a change in price
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Marginal Product of Labor
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the change in output from hiring one additional unit of labor
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Increasing Marginal Returns
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a level of production in which the marginal product of labor increases as the number of workers increases
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Diminishing Marginal Returns
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a level of production in which the marginal product of labor decreases as the number of workers increases
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Fixed Cost
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a cost that does not change, no matter how much of a good is produced
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Variable Cost
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a cost that rises or falls depending on how much is produced
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Total Cost
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fixed costs plus variable costs
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Marginal Cost
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the cost of producing one more unit of a good
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Marginal Revenue
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the additional income from selling one more unit of a good; sometimes equal to price
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Operating Cost
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the cost of operating a facility, such as a store or praying
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Subsidy
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a government payment that supports a business or market
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Excise Tax
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a tax on the production or sale of a good
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Regulation
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government intervention in a market that affects the production of a good
