Honors Chapter 5 (Podcast and Textbook)

question

Supply

answer

The amount of a product offered for sale at all possible prices in a given time

question

input

answer

items put into a business, like the factors of productions (Labor)

question

output

answer

products you come up with

question

short-run

answer

making changes in the amount of labor in a company

question

long-run

answer

period of production that allows producers to change ANY of the factors of productions.

question

variables

answer

able to be changed

question

raw materials

answer

Unprocessed natural products used in production

question

Law of supply

answer

Refers to the relationship between price and the quantity of a good/service that firms are willing to produce. The higher the price of the product leads to more supplies and more companies making the product. Suppliers will normally offer more for sale at higher prices and less at lower prices.
- As price increases, quantity supply increases
- As price falls, quantity supply falls

question

Supply chain

answer

All the things a product must go through to get to the consumer
Raw materials -> Supplies -> Manufacturing -> Distribution -> Customer -> Consumer

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change in supply

answer

a shift of the supply curve, which changes the quantity supplied at any given price

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Change in supply reasons

answer

Costs in Inputs: if expenses to make a product change, so will supply
Productivity: more productivity, the more supply; inverse is true also
Technology: new tech, can increase supply
Government: taxes and subsidies (payment by gov to encourage economic activity)
Expectations: if you expect recession, decrease supply (vice-versa)
Government Regulations: this can restrict supply for some, increase for others
Number of Sellers: the more sellers, the less each one will make (vice-versa)

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Total Product

answer

total output produced by the firm

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Marginal Product

answer

The EXTRA output caused by the additional of one more unit of variable input

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Law of Variable Proportions

answer

in the short run, output will change as one input is varied (All Things Being Equal)

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Increasing Returns

answer

With every input added, the output is increasing larger

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Diminishing Returns

answer

With every input added, output increases at a slower rate than before

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Constant Returns

answer

same amount added

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Negative Returns

answer

Output decreases every input added

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Total Revenue

answer

The total amount of units sold X The average price per unit

question

Marginal Revenue

answer

extra revenue from the sale of one additional unit of output (Typically equal to price)

question

Marginal analysis

answer

A cost-benefit analysis comparing the extra cost to benefits of a decision

question

Break-Even Point

answer

The total product a business needs to produce in order to cover cost

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Profit Maximizing Quantity of Output

answer

When marginal cost and marginal revenue are equal

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elasticity

answer

A measure of how much one economic variable responds to changes in another economic variable.

question

difference between elasticity of demand and supply

answer

Elasticity of Supply changes much more slowly- you much PREDICT it to be successful

question

theory of production

answer

revolves around time in which the relationship between two factors of production (inputs and outputs) of products

question

in order to produce you need factors of production of

answer

land
capital
labor
entrepreneurship

question

cost

answer

how much a business pays to make a product

question

Fixed Cost:

answer

a cost that does not change, no matter how much of a good is produced. ex rent.
called overhead

question

Variable Cost:

answer

changes with output
Ex. labor, raw materials

question

Total Cost:

answer

fixed + variable costs

question

Marginal Cost:

answer

extra cost for a business to make 1 more product

question

equation for marginal cost

answer

Added Variable Cost ÷ Marginal Product

question

Income Effect

answer

the change in consumption resulting from a change in real income

1 of 34

question

Supply

answer

The amount of a product offered for sale at all possible prices in a given time

question

input

answer

items put into a business, like the factors of productions (Labor)

question

output

answer

products you come up with

question

short-run

answer

making changes in the amount of labor in a company

question

long-run

answer

period of production that allows producers to change ANY of the factors of productions.

question

variables

answer

able to be changed

question

raw materials

answer

Unprocessed natural products used in production

question

Law of supply

answer

question

Supply chain

answer

All the things a product must go through to get to the consumer
Raw materials -> Supplies -> Manufacturing -> Distribution -> Customer -> Consumer

question

change in supply

answer

a shift of the supply curve, which changes the quantity supplied at any given price

question

Change in supply reasons

answer

question

Total Product

answer

total output produced by the firm

question

Marginal Product

answer

The EXTRA output caused by the additional of one more unit of variable input

question

Law of Variable Proportions

answer

in the short run, output will change as one input is varied (All Things Being Equal)

question

Increasing Returns

answer

With every input added, the output is increasing larger

question

Diminishing Returns

answer

With every input added, output increases at a slower rate than before

question

Constant Returns

answer

same amount added

question

Negative Returns

answer

Output decreases every input added

question

Total Revenue

answer

The total amount of units sold X The average price per unit

question

Marginal Revenue

answer

extra revenue from the sale of one additional unit of output (Typically equal to price)

question

Marginal analysis

answer

A cost-benefit analysis comparing the extra cost to benefits of a decision

question

Break-Even Point

answer

The total product a business needs to produce in order to cover cost

question

Profit Maximizing Quantity of Output

answer

When marginal cost and marginal revenue are equal

question

elasticity

answer

A measure of how much one economic variable responds to changes in another economic variable.

question

difference between elasticity of demand and supply

answer

Elasticity of Supply changes much more slowly- you much PREDICT it to be successful

question

theory of production

answer

revolves around time in which the relationship between two factors of production (inputs and outputs) of products

question

in order to produce you need factors of production of

answer

land
capital
labor
entrepreneurship

question

cost

answer

how much a business pays to make a product

question

Fixed Cost:

answer

a cost that does not change, no matter how much of a good is produced. ex rent.
called overhead

question

Variable Cost:

answer

changes with output
Ex. labor, raw materials

question

Total Cost:

answer

fixed + variable costs

question

Marginal Cost:

answer

extra cost for a business to make 1 more product

question

equation for marginal cost

answer

Added Variable Cost ÷ Marginal Product

question

Income Effect

answer

the change in consumption resulting from a change in real income

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Honors Chapter 5 (Podcast and Textbook)

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