Title | Economics- Chapter 5 Flashcards (Mark) |
---|---|
Author | Wila Esper |
Course | Economic Analysis I |
Institution | Stanford University |
Pages | 5 |
File Size | 290 KB |
File Type | |
Total Downloads | 67 |
Total Views | 136 |
Chapter Flashcards, this were from a past test....
Economics- Chapter 5 Flashcards | Quizlet
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Economics- Chapter 5 Terms in this set (51) supply
the amount of a product that would be offered for sale at all possible prices that could prevail in the market
law of supply
principle that suppliers will normally offer more for sale at high prices and less at lower prices
supply schedule
a listing of the various quantities of a particular product supplied at all possible prices in the market
Economics- Chapter 5
market supply curve
Study
supply curve that shows the quantities offered a firms that offer the product for sale in a given m
quantity supplied
the amount that producers bring to market at an
change in quantity supplied
the change in amount offered for sale in respon price
change in supply
suppliers offer different amounts of products fo prices in the market
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Page 1 of 5
Economics- Chapter 5 Flashcards | Quizlet
11/15/21, 8 :27 AM
subsidy
a government payment to an individual, business, or other group to encourage or protect a certain type of economic activity
supply elasticity
a measure of the way in which the quantity supplied responds to a change in price
production function
a figure that shows how total output changes when the amount of a single variable input (usually labor) changes while all other inputs are held constant
short run
a period so brief that only the amount of the variable input can be changed
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long run
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a period long enough for the firm to adjust the quantities of all productive resources
total product
marginal product
the total output produced by the firm
the extra output or change in total product caused by adding one more unit of variable input
1.) increasing returns
What are the 3 stages of production?
2.) diminishing returns 3.) negative returns
diminishing returns
the stage where output increases at a diminishing rate as more variable inputs are added
fixed costs
the costs that an organization incurs even if there is little or no activity
supply
the various quantities of a good or service producers are willing and able to sell at all possible prices at a particular time
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Page 2 of 5
Economics- Chapter 5 Flashcards | Quizlet
11/15/21, 8 :27 AM
quantity supplied
the name given to the specific amount producers plan to sell at a particular price
supply curve
the two dimensional graphic model of the relationship between price and quantity supplied
law of supply
states that as price rises, the quantity supply also rises; vice versa
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price effect
higher prices cover higher costs of
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What is another name for the law of supply?
Why does the law of supply work the way it does?
production
supply schedule
chart that provides a list of all of the various prices and quantities supplied
direct
What kind of relationship is there between price and quantity when dealing with supply?
costs
elasticity
Supply is always based on a firm's ________.
defined as the degree of responsiveness that producers have to a change in price of a product
supply is all possibilities at a particular
What is the difference between supply and quantity supplied?
price; quantity supplied is a specific number at a price
change in price
What leads to a change in quantity supplied?
other than price
A change in supply occurs when something _________ ________ _________ leads to a change in selling decisions.
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Page 3 of 5
Economics- Chapter 5 Flashcards | Quizlet
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decreases
What happens to supply when the cost of production increases?
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short run
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the production period in which there is only enough time to change the variable input of labor
1.) total product rises
What takes place during Stage I of the production function?
2.) marginal product rises 3.) increasing returns
1.) total product slows
What takes place during Stage II of the production function?
2.) marginal product decreases 3.) diminishing returns
1.) total product decreases
What takes place during stage III of the production function?
2.) marginal product is negative 3.) negative returns
Stage II
break-even point
maximize
During what stage will producers want to produce?
The point at which the total cost and total revenue are equal
At the point where marginal cost and marginal revenue are equal, a producer will _________ profits.
quick, easy, and inexpensive to produce
When is a product's supply elastic?
more
slow, difficult, and expensive to produce
When is a product's supply inelastic?
more
up to the right
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What direction does a supply curve slope?
Page 4 of 5
Economics- Chapter 5 Flashcards | Quizlet
11/15/21, 8 :27 AM
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strong
weak
unit elastic
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When a product is elastic, the price effect is _______.
When a product is inelastic, the price effect is _______.
a change in price causes a proportional change in quantities supplied
short run
time period in which you only have time to change the number of workers
long run
time period in which you have time to change everything other than the number of workers
law of variable proportions
as you add an additional unit of input (one worker), you should expect varying levels of output; eventually makes things worse
production function
describes the relationship between changes in output to different amounts of a single input while others are held constant
break-even point
profit-maximize quantity of output
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point where the total cost equals the total revenue
when the marginal cost equals the marginal revenue
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