Econ Ch 5 Vocab Review

Supply is defined as the amount of a product available for sale in the market.

• The amount of a product available for sale

• The desire to consume a product

• The cost of production

• None of the above

The law of supply states that as the price of a good increases, the quantity supplied increases, and as the price decreases, the quantity supplied decreases.

• As the price increases, the quantity supplied increases.

• As the price increases, the quantity supplied decreases.

• The quantity supplied is independent of the price.

• Both the supply and demand increase together.

A supply schedule is a table or chart that shows the relationship between the price of a good and the quantity supplied.

• It is a table that shows the relationship between price and quantity supplied

• It is a list of consumer preferences

• It is a graph that depicts market demand

• It is a schedule for product delivery

Define market supply schedule.

• A schedule that shows the relationship between price and quantity supplied.

• A schedule that shows the relationship between demand and supply.

• A schedule that shows the relationship between price and quantity demanded.

• A schedule that lists market transactions.

A supply curve is an economic graph that shows the relationship between the price of a product and the quantity supplied.

• It shows the relationship between price and quantity demanded.

• It shows the relationship between price and quantity supplied.

• It represents changes in costs or revenues.

• It depicts consumer preferences.

The market supply curve shows the relationship between the price of a good and the quantity supplied.

• As the price increases, the quantity supplied increases.

• As the price increases, the quantity supplied decreases.

• As the price increases, the quantity supplied remains unchanged.

• None of the above.

Marginal product is defined as the additional output generated by one additional unit of input.

• The additional output generated by one additional unit of input.

• The total output obtained by all units of input.

• The ratio of total output to total input.

• The cost incurred when production is increased.

Define specialization. (Select the best option)

• The process of concentrating on a particular subject or skill.

• A method to generalize multiple subjects into one.

• The act of random learning without focus.

• An approach to standardize all skills equally.

Increasing returns refer to the situation where an increase in inputs results in a more than proportional increase in output.

• A phenomenon where a percentage increase in input leads to an identical percentage increase in output.

• A phenomenon where a percentage increase in input leads to a smaller percentage increase in output.

• A phenomenon where a percentage increase in input leads to a larger percentage increase in output.

• An economic concept that describes diminishing marginal returns.

Diminishing returns occur when each additional unit of input results in a smaller increase in output than the previous unit.

• After a certain point, each additional input produces less output than before.

• Additional inputs always yield the same amount of extra output.

• Inputs have no effect on output levels.

• Each additional input consistently doubles the output.