FREE ECONOMICS AND STUDY GAMES ABOUT CHAPTER 5

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FREE ECONOMICS AND STUDY GAMES ABOUT CHAPTER 5

SUPPLY EXAM QUESTIONS

Actual Qs and Ans Expert-Verified Explanation

This Exam contains:

-Guarantee passing score -28 Questions and Answers -format set of multiple-choice -Expert-Verified Explanation

Question 1: short run

Answer:

production period so short that only variable inputs (usually labor) can be changed

Question 2: supply schedule

Answer:

a table showing the quantities that would be produced or offered for sale at each and every possible price in the market at a given point in time

Question 3: Law of Supplly

Answer:

principle that more will be offered for sale at higher prices than at lower prices

Question 4: total product

Answer:

total output or production by a firm

Question 5: quantity supplied

Answer:

specific amount offered for sale at a given price; point on the supply curve

Question 6: average revenue

Answer:

average price that every unit of output sells for

Question 7: supply

Answer:

amount of a product a producer or seller would be willing to offer for sale at all possible prices in a market at a given point in time

Question 8: marginal cost

Answer:

extra cost of producing one additional unit of production

Question 9: change in supply

Answer:

different amounts offered for sale at each and every possible price in the market; shift of the supply curve

Question 10: break-even point

Answer:

production level where total cost equals total revenue; production needed if the firm is is to recover its costs

Question 11: e-commerce

Answer:

electronic business or exchange conducted over the internet

Question 12: profit-maximizing quantity of output

Answer:

level of production where marginal cost is equal to marginal revenue

Question 13: diminishing returns

Answer:

stage of production where output increase at a decreasing rate as more unites of variable input are added

Question 14: supply elasticity

Answer:

responsiveness of quantity supplied to a change in price

Question 15: overhead

Answer:

broad category of fixed costs that includes interest, rent, taxes, and executive salaries

Question 16: subsidy

Answer:

government payment to encourage or protect a certain economic activity

Question 17: stages of production

Answer:

phases of production that consist of increasing, decreasing, and negative returns

Question 18: total revenue

Answer:

total amount earned by a firm from the sale of its products; average price of a good solid times times the quantity sold

Question 19: total cost

Answer:

sum of variable cost plus fixed costs; all costs associated with production

Question 20: supply curve

Answer:

a graph that shows the quantities supplied at each and every possible price in the market

Question 21: long run

Answer:

production period long enough to change amount of variable and fixed inputs used in production

Question 22: fixed costs

Answer:

costs of production that do not change when output changes

Question 23: production function

Answer:

graphic portrayal showing how a change in the amount of a single variable input affects total output

Question 24: variable cost

Answer:

production cost that varies as output changes; labor, energy, raw materials

Question 25: marginal product

Answer:

extra output due to the addition of one more unit of input

Question 26: change in quantity supplied

Answer:

change in the amount offered for sale in response to a price change; movement along the supply curve

Question 27: marginal revenue

Answer:

extra revenue from the sale of one additional unit of output

Question 28: market supple curve

Answer:

supple curve that shows the quantities offered at various prices by all firms that sell the same product in a given market