Understanding Supply Costs of Production Changes in Supply

Question The amount of goods available

Answer 1 – 100 What is supply?

Question Tendency of suppliers to offer more of a good at a higher price.

Answer 1 – 200 What is Law of Supply?

Question A chart that lists how much of a good a supplier will offer at different prices.

Answer 1 – 300 What is a supply schedule?

Question A chart that lists how much of a good all suppliers will offer at different prices.

Answer 1 – 400 What is a market supply schedule?

Question The amount a supplier is willing and able to supply at a certain price

Answer 1 – 500 What is Quantity Supplied?

Question A factor that can change.

Answer 2 – 100 What is a variable?

Question A graph of the quantity supplied of a good at different prices

Answer 2 – 200 What is a supply curve

Question A graph of the quantity supplied of a good by all suppliers at different prices

Answer 2 – 300 What is a market supply curve?

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

Answer 2 – 400 What is elasticity of supply?

Question According to the Law of Supply, the higher the price, the larger the quantity produced. According to the Law of Demand, the higher the price, the lower the quantity demanded Supply rises if price rises, falls if price falls Demand rises if price falls, falls if price rises

Answer 2 – 500 How is the law of supply different from the law of demand?

Question The change in output from hiring one additional unit of labor.

Answer 3 – 100 What is marginal product of labor?

Question A level of production in which the marginal product of labor increases as the number of workers increases.

Answer 3 – 200 What is increasing marginal returns?

Question A level of production in which the marginal product of labor decreases as the number of workers increases.

Answer 3 – 300 What are diminishing marginal returns?

Question The cost of operating a facility, such as a store or factory.

Answer 3 – 400 What is operating cost?

Question To determine the best level of output, firms determine the output level at which THIS is equal to marginal cost

Answer 3 – 500 What is marginal revenue?

Question A government payment that supports a business or a market

Answer 4 – 100 What is a subsidy?

Question A tax on the production or sale of a good.

Answer 4 – 200 What is an excise tax?

Question Government intervention in a market that affects the production of a good.

Answer 4 – 300 What is regulation?

Question The relationship between input costs and supply could be answered as this.

Answer 4 – 400 Any change in the cost of an input such as the raw materials, machinery, or labor used to produce a good, will affect supply. As input costs increase, the firm’s marginal costs also increase, decreasing profitability and supply. Input costs can also decrease. New technology can greatly decrease costs and increase supply.

Question These are the other factors that influence supply.

Answer 4 – 500 The Global Economy Future Expectations of Prices Number of Suppliers

Question The poverty threshold is an income level below that which is needed to support families or households. The poverty threshold is determined by this

Answer 5 – 100 What is the Federal Government?

Question a general term that refers to government aid to the poor.

Answer 5 – 200 What is Welfare?

Question direct payments of money to eligible people.

Answer 5 – 300 What are Cash Transfers

Question are goods and services provided by the government for free or at greatly reduced prices.

Answer 5 – 400 What are In-Kind Benefits?

Question These are the four types of cash transfer redistribution programs

Answer 5 – 500 What are Temporary Assistance for Needy Families, Social Security, Stability, Workers’ Compensation.