Economics Chapter 5 - Assignment Essays

question

false

answer

A supply curve is a graph that shows the various quantities supplied at a single market price

question

true

answer

Productivity will decrease if workers are unmotivated

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false

answer

If producers expect lower prices in the future, they may withhold some of the supply

question

false

answer

When more suppliers enter the market, the market supply will typically decline

question

true

answer

The theory of production deals with the relationship between the factors of production and the output of goods and services

question

false

answer

The Law of Variable Proportions states that in the short run, output will not change as one production input is varied while the others remain constant

question

true

answer

The production function describes the relationship of changes in output to different amounts of a single input while other inputs are held constant

question

true

answer

An increase in output as each new input is added, as in the addition of a worker, describes Stage I of the stages of production

question

true

answer

Fixed cost is the cost that a business incurs even if there are no employees and no production takes place

question

true

answer

The number of items sold multiplied by the average price of each item yields the total revenue of a business

question

false

answer

The Law of Supply states that suppliers will normally offer less for sale at higher prices and more for sale at lower prices

question

true

answer

The market supply curve shows the quantities offered at various prices by all firms that offer the product for sale in a given market

question

true

answer

An increase in the cost of inputs can cause the supply curve to shift to the left

question

true

answer

The supply curve is likely to be elastic for products that can be made quickly without huge amounts of capital and skilled labor

question

false

answer

The introduction of technology usually has no effect on supply

question

true

answer

The mis of variable costs and fixed costs that a business faces affects the way the business operates

question

false

answer

Marginal cost is the change in total revenue when one more unit of output is sold

question

true

answer

The four important measures of cost are: total cost, fixed cost, variable cost, and marginal cost

question

false

answer

The profit-maximizing quantity of output occurs when marginal cost is exactly equal to total revenue

question

true

answer

Marginal analysis compares the additional benefits of an action to its additional costs

question

supply

answer

the amount of a product that would be offered for sale at all possible prices that could prevail in the market

question

quantity supplied

answer

amount that producers bring to the market at any given price

question

supply curve

answer

a graph showing the various quantities supplied at each and every price that might prevail in the market

question

supply elasticity

answer

measure of the way in which quantity supplied responds to a change in price

question

subsidy

answer

a government payment to an individual, business, or other group to encourage or protect a certain type of economic activity

question

the quantity supplied varies directly with its price

answer

The Law of Supply states that

question

fewer sellers in the marketplace

answer

All of the following can cause an increase in supply EXCEPT

question

ice cream cones

answer

Which product is likely to have the most elastic supply curve?

question

upward sloping

answer

The supply curve is

question

shift to the left

answer

Increased government regulations can cause the supply curve to

question

demand schedule

answer

listing of quantities that would be offered for sale at all possible prices that could prevail in the market

question

long run

answer

a period of production that allows producers to change the amount of all inputs

question

Law of Variable Proportions

answer

states that in the short run, output will change as one input is varied while the others are held constant

question

production function

answer

concept that describes the relationship between changes in output to different amounts of a single input while other inputs are held constant

question

raw materials

answer

Unprocessed natural products used in production

question

marginal product

answer

the extra output or change in total product caused by the addition of one more unit of variable input

question

total product

answer

total output produced by a firm

question

equaling returns

answer

All of the following are stages of production EXCEPT

question

the short run

answer

The period of production that allows producers to change only the amount of the variable input called labor is

question

changes in input that result from changes in output

answer

A production function shows

question

increasing returns, diminishing returns, negative returns

answer

In what order do the three stages of production occur?

question

the way marginal product changes as variable inputs are added

answer

The stages of production are based on

question

total cost

answer

sum of the fixed and variable cost

question

fixed cost

answer

cost that a business incurs even if the plant is idle and output is zero

question

variable cost

answer

cost that changes when the business rate of operation or output changes

question

marginal cost

answer

extra cost incurred when a business produces one additional unit of a product

question

total revenue

answer

the number of units sold multiplied by the average price per unit

question

e-commerce

answer

electronic business or exchange conducted over the internet

question

marginal analysis

answer

Cost-benefit decision making that compares the extra benefits to the extra costs of an action is called

question

adding fixed and variable costs

answer

The total cost of production is determined by

question

interest payments on bonds

answer

All of the following are examples of variable costs EXCEPT

question

operate longer hours than a firm whose fixed costs are small relative to variable costs

answer

If a business's fixed costs are large relative to its variable costs, it is likely to

question

marginal cost is equal to marginal revenue

answer

Profit is maximized when

1 of 53

question

false

answer

A supply curve is a graph that shows the various quantities supplied at a single market price

question

true

answer

Productivity will decrease if workers are unmotivated

question

false

answer

If producers expect lower prices in the future, they may withhold some of the supply

question

false

answer

When more suppliers enter the market, the market supply will typically decline

question

true

answer

The theory of production deals with the relationship between the factors of production and the output of goods and services

question

false

answer

The Law of Variable Proportions states that in the short run, output will not change as one production input is varied while the others remain constant

question

true

answer

The production function describes the relationship of changes in output to different amounts of a single input while other inputs are held constant

question

true

answer

An increase in output as each new input is added, as in the addition of a worker, describes Stage I of the stages of production

question

true

answer

Fixed cost is the cost that a business incurs even if there are no employees and no production takes place

question

true

answer

The number of items sold multiplied by the average price of each item yields the total revenue of a business

question

false

answer

The Law of Supply states that suppliers will normally offer less for sale at higher prices and more for sale at lower prices

question

true

answer

The market supply curve shows the quantities offered at various prices by all firms that offer the product for sale in a given market

question

true

answer

An increase in the cost of inputs can cause the supply curve to shift to the left

question

true

answer

The supply curve is likely to be elastic for products that can be made quickly without huge amounts of capital and skilled labor

question

false

answer

The introduction of technology usually has no effect on supply

question

true

answer

The mis of variable costs and fixed costs that a business faces affects the way the business operates

question

false

answer

Marginal cost is the change in total revenue when one more unit of output is sold

question

true

answer

The four important measures of cost are: total cost, fixed cost, variable cost, and marginal cost

question

false

answer

The profit-maximizing quantity of output occurs when marginal cost is exactly equal to total revenue

question

true

answer

Marginal analysis compares the additional benefits of an action to its additional costs

question

supply

answer

the amount of a product that would be offered for sale at all possible prices that could prevail in the market

question

quantity supplied

answer

amount that producers bring to the market at any given price

question

supply curve

answer

a graph showing the various quantities supplied at each and every price that might prevail in the market

question

supply elasticity

answer

measure of the way in which quantity supplied responds to a change in price

question

subsidy

answer

a government payment to an individual, business, or other group to encourage or protect a certain type of economic activity

question

the quantity supplied varies directly with its price

answer

The Law of Supply states that

question

fewer sellers in the marketplace

answer

All of the following can cause an increase in supply EXCEPT

question

ice cream cones

answer

Which product is likely to have the most elastic supply curve?

question

upward sloping

answer

The supply curve is

question

shift to the left

answer

Increased government regulations can cause the supply curve to

question

demand schedule

answer

listing of quantities that would be offered for sale at all possible prices that could prevail in the market

question

long run

answer

a period of production that allows producers to change the amount of all inputs

question

Law of Variable Proportions

answer

states that in the short run, output will change as one input is varied while the others are held constant

question

production function

answer

concept that describes the relationship between changes in output to different amounts of a single input while other inputs are held constant

question

raw materials

answer

Unprocessed natural products used in production

question

marginal product

answer

the extra output or change in total product caused by the addition of one more unit of variable input

question

total product

answer

total output produced by a firm

question

equaling returns

answer

All of the following are stages of production EXCEPT

question

the short run

answer

The period of production that allows producers to change only the amount of the variable input called labor is

question

changes in input that result from changes in output

answer

A production function shows

question

increasing returns, diminishing returns, negative returns

answer

In what order do the three stages of production occur?

question

the way marginal product changes as variable inputs are added

answer

The stages of production are based on

question

total cost

answer

sum of the fixed and variable cost

question

fixed cost

answer

cost that a business incurs even if the plant is idle and output is zero

question

variable cost

answer

cost that changes when the business rate of operation or output changes

question

marginal cost

answer

extra cost incurred when a business produces one additional unit of a product

question

total revenue

answer

the number of units sold multiplied by the average price per unit

question

e-commerce

answer

electronic business or exchange conducted over the internet

question

marginal analysis

answer

Cost-benefit decision making that compares the extra benefits to the extra costs of an action is called

question

adding fixed and variable costs

answer

The total cost of production is determined by

question

interest payments on bonds

answer

All of the following are examples of variable costs EXCEPT

question

operate longer hours than a firm whose fixed costs are small relative to variable costs

answer

If a business's fixed costs are large relative to its variable costs, it is likely to

question

marginal cost is equal to marginal revenue

answer

Profit is maximized when

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