Econ Ch 5 Study Set

Who is a producer?

• A manufacturer of goods

• A buyer of goods and services

• A provider of financial backing

• A provider of goods and services

The additional expense of producing one more unit of a product is called

• Marginal revenue

• Marginal labor

• Marginal cost

• Marginal product

The difference between fixed costs and variable costs is that

• Fixed costs remain the same; variable costs are determined by fixed costs

• Fixed costs are always low; Variable costs are always high

• Fixed costs remain the same; variable costs depend on how much is produced

• Fixed costs depend on outside forces; variable costs depend on internal forces

How is Total Revenue calculated?

• Change in price X Change in Quantity demanded

• Marginal Revenue (Price) X. Total Product/Quantity Sold

• Price X. Change in Demand

• Change in Price X Quantity Sold

Total cost is the sum of

• Fixed costs and variable costs

• Fixed costs and marginal costs

• Fixed, Marginal, and Variable Costs

• Marginal Costs and Variable Costs

Supply is defined as

• The willingness and ability of producers to offer goods & services for sale

• The willingness and ability of consumers to purchase goods & services

• The willingness and ability of laborers to work for producers for pay

• The willingness and ability of the government to offer protections to citizens

How does a business calculate total profit?

• Total revenue plus marginal costs

• Total Revenue minus total costs

• Total revenue minus marginal costs

• Total revenue plus total costs

What do both elasticity of demand and elasticity of supply measure?

• Responsiveness to price

• Desires of consumers

• Responsiveness to quantity

• Desire of producers

This situation occurs when one or more economic changes cause producers to sell more or less of a product AT EVERY PRICE

• Change in Quantity Supplied

• Change in Quantity Demanded

• Change in Demand

• Change in Supply

How is marginal cost calculated?

• Change in total product divided by change in total cost

• Change in total costs divided by change in total product

• Fixed costs plus variable costs multiplied by product

• Fixed costs plus variable costs divided by product