Economics Chapter 5 Unit Test
supply schedule
a chart showing the quantities offered for sale at each possible price in the market
In the short run, the amount of capital available for manufacturing is an example of which of these?
a fixed factor of production
Which of these best enables a firm to establish its profit-maximizing quantity of output?
a periodic marginal analysis
Which term denotes the change in total income when one additional unit of output is added?
marginal revenue
Which of these do producers of an item hope to achieve when adopting new technologies?
a shift of the supply curve for that item to the right
Labor in a factory is an example of which of these?
a variable factor of production
C05_020A-664343.png Based on the chart, which of the following statements are accurate? Select all that apply.
Although Stage II is the stage of diminishing returns, it also includes the point at which there is profit-maximizing quantity of output. Marginal revenue, the extra revenue a business receives from the production and sale of one additional unit of output, is calculated by dividing the change in total revenue by the change in total output. Total fixed costs, sometimes called overhead, remain the same.
Which of these best describes the influence of high prices on the behavior of producers?
High prices are an incentive for producers to produce more.
At which stage of production does the concept of "diminishing returns" first become significant?
Stage II
Factors that can cause a change in supply include
all of the above
quantity supplied
amount offered for sale at a given price point on the supply curve
The level of production that generates just enough revenue to cover its total operating costs is called the:
break-even point.
e-commerce
business conducted over the Internet
Because it takes huge amounts of capital and technology to increase nuclear power output, the supply curve for nuclear power is
inelastic in the short run.
When is a firm's rate of hiring likely to be highest?
during a phase of increasing marginal returns
Which term is generally associated with machines and other capital goods?
fixed cost
Which two terms are the most similar in meaning?
fixed costs and overhead
subsidy
government payment to encourage or protect a certain economic activity
Which of these could a firm accomplish during a short-run production period?
hiring and firing of workers
A supply schedule lists various quantities of a specific product with
possible prices in the market
Which of these would an item's producer be most likely to do if total revenue on that item began to drop?
produce less of that item
At which point in the stages of production does the maximum profitable number of workers become most apparent?
the beginning of Stage III
supply
the different amounts offered for sale at each possible price in the market
Which of these can be illustrated with a production function?
the effect of an increase in work hours on total output
Which of these industries has the least elastic supply curve?
the nuclear industry
Changes to variable and fixed input are easiest during a long-run production period.
true
The stages of production are distinguished by their marginal products.
true
The stages of production measure the effects of workforce size on marginal product.
true
The third stage of production is distinguished by an increase in output.
true
total product
entirety of output or production by a firm
marginal cost
extra expense created by producing one additional unit of production
production function
graph showing how a change in the amount of a single variable input affects total output
average revenue
mean price of a unit of output
Law of Supply
principle that more will be offered for sale at higher prices than at lower prices