Shared Flashcard Set

Details

Supply
supply
32
Economics
11th Grade
10/08/2014

Additional Economics Flashcards

 


 

Cards

Term
The Quantity of goods and services that producers are willing to offer at VARIOUS possible prices during a given time period
Definition
Suppy
Term
The amount a good or service that a producer is willing to sell each at a PARTICULAR price
Definition
Quantity Supplied
Term
States that producers supply more goods and services when they can sell them at higher prices adn fewer goods and services when they must sell them at a lower price
Definition
Law of Supply
Term
The amount of money remaining after producers have paid all of their costs
Definition
Profit
Term
Wages, salaries, rent, and interests on loans and any other goods or services used to manufacture a product
Definition
Cost of Production
Term
Plots on a graph about the information from a supply schedule
Definition
Supply Curve
Term
The degree to which price changes affect the quantity supplied
Definition
Elasticity of Supply
Term
Exists when a small change in price causes a major change int the quantity supplied
Definition
Elastic Supply
Term
Exists when a change in a goods price has little impact on the quantity supplied
Definition
Inelastic Supply
Term
How does the concept of supply differ from the quantity supplied?<
Definition

 

Quantity supplied- quantity of a product that a producer is willing to sell at each particular price

Term
What is law of supply?
Definition
Producers supply more products at higher prices and fewer products at lower prices
Term
How does the profit motive help explain the law of supply?
Definition
Producers adjust supply to maximize profits
Term
Non-price factors that can shift the entire supply curve of a product instead of simply changing the quantity supplied along the original supply curve
Definition
Determinants of Supply
Term
TaxRequired payment of money to the government to help fund government services
Definition
Tax
Term
Payments to private businesses by the government
Definition
Subsides
Term
Rules about how companies conduct businesses
Definition
Regulations
Term

 

A shift in supply is indicated by the entire supply curve to right or left

Definition
Hows a shift in the supply curve different from a change in the quantity supplied?

A change in quantity supplied is indicated by movement along the supply curve

Term

 

Government tools- taxes, subsides, or regulations

 

Technology- any new methods that increase efficienscy of production

 

Prices of related goods- prices of similar goods of production

 

Producer expectations- what producers expect of the economy in the future 

 

Definition
List of Determinants and Examples

Prices of resources- cost of resources used to make products or provide services

Term
How can taxes and subsides affect supply?
Definition

 

Subsides reduce production costs which increase profit, which leads businesses to increase supply

How can taxes and subsides affect supply?

Higher taxes increase production costs which decrease profits, which lead businesses to decrease supply

Term
All of the product a company makes in a given period of time - with a given amount of input
Definition

Total product

 

Term
The change in output generated by adding one more unit of input
Definition
Marginal product
Term
The law describes the effect that varuing the level of an output has a total and marginal product
Definition
Law of diminishing returns
Term
Production costs that do not change as the level of output changes
Definition
Fixed costs
Term
Lessening in value
Definition
Depreciation
Term
The company's total fixed costs
Definition

Overhead

 

Term
Costs that change as the level of output changes
Definition
Variable Costs
Term
The sum of fixed costs and variable costs
Definition
Total Costs
Term
The additional costs of producing one more unit of output
Definition
Marginal Costs
Term
How does productivity influence supply decisions?
Definition
Increased productivity raises profits, encouraging an increase in supply
Term
How do you detemine what happens to productivity when a products inputs change?
Definition
By examining how total and marginal product changes as input changes
Term
What happens in each of the 3 states of production?
Definition

Increasing returns- additional inputs result in additional total and marginal product

 

Diminishing marginal returns- total product increases marginal product decreases

 

Negative return- total product decreases

Term
What difference between fixed costs and variable costs?
Definition
Fixed costs do not change and variable costs change with production levels
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