(ECO) Ch.5 Vocabulary Review

What is "supply" in economics?

• The quantity of a good that producers are willing to offer for sale

• The amount of money consumers are willing to pay for a product

• Demand for a product

According to the Law of Supply, as the price of a good increases, what happens to the quantity supplied?

•  It stays the same

•  It decreases

•  It increases

What is the graphical representation of the relationship between the price of a good and the quantity that suppliers are willing to produce and sell in a market?

•  Demand curve

• Supply schedule

• Market supply curve

What is the term for the specific amount of a good that a supplier is willing to produce and sell at a given price?

• Quantity demanded

• Demand

• Quantity supplied

When factors such as technology, input prices, and government policies influence the amount of a good that suppliers are willing to produce and sell at each price level, what is this called?

• Market equilibrium

• Change in supply

• Elasticity of demand

What is a financial assistance or support provided by the government to producers to encourage the production of a specific good?

• Loan

• Subsidy

• Tax

What does "supply elasticity" measure?

• The total cost of production

•  How much consumers want a product

• The responsiveness of quantity supplied to changes in price

What is the relationship that shows how the quantity of output depends on the quantity of a single input in the short run?

•  Demand curve

• Production function

• Market equilibrium

When each additional unit of input results in a smaller increase in output, what economic concept is being described?

• Economies of scale

• Diminishing returns

• Elasticity of supply

What are the costs that do not change with the level of output, such as rent and insurance, called?

• Fixed costs

• Marginal costs

• Variable costs