Supply
Bob the Builder
Skin in the Game
The Feds
Chart-ing a Course
100
According to the law of supply, supply will decrease when this other economic factor decreases.
What is price?
100
This is the primary motivation for all actions taken by firms operating in a market economy.
What is the profit incentive?
100
A mortgage is an example of this type of cost of production.
What is a fixed cost?
100
The minimum wage is an example of this type of government intervention in the market.
What is a price floor?
100
This term is used to describe a situation in which, when price changes, the percentage change in price and in supply are the same.
200
This term is used to describe supply of a good that can be increased or decreased relatively quickly.
What is elastic?
200
A bicycle producer would likely take these two actions in reaction to a shortage of its product.
What is raising prices and increasing supply?
200
In general, it is a bad move for a company to produce more of a good or service if, by doing so, marginal cost exceeds this value.
What is marginal revenue?
200
The removal of car mileage regulations would likely have this effect on the supply of cars in the United States.
What is an increase?
200
A market is said to be in equilibrium at the price where these two values are equal.
What is quantity demanded and quantity supplied?
300
New suppliers tend to enter a market in response to this situation.
What are rising prices?
300
A firm receiving faulty data from stores on consumer demand for its product is an example of this type of market failure.
300
More than any other change, this technological development has dramatically reduced search costs for consumers.
What is the Internet?
300
These government actions help producers by reducing their production costs.
What are subsidies?
300
A trade agreement with Brazil opening U.S. markets to imported ethanol would tend to shift the supply curve for ethanol in the United States in this direction.
What is the right?
400
Local stores will likely take this action in response to a their town scheduling a huge, weeklong series of outdoor concerts for early summer.
What is increase their supply of consumer goods?
400
In determining the optimal level of output, a firm should aim for the point at which this is maximized.
What is profitability?
400
A business would be wise to shut down its factory in a situation in which these type of costs exceeded revenue.
What are fixed costs?
400
Price is artificially kept below equilibrium by this category of government intervention.
What is a price ceiling?
400
This sort of table shows how changes in price affect supply for a market.
What is a supply schedule?
500
The profit incentive encourages producers to take this action when there is a surplus of a good.
What is lowering prices?
500
A company might consider purchasing more machinery in order to increase this per-unit measure of additional output.
What is marginal return?
500
Lower input costs have this effect on a firm's marginal costs.
What is decreasing?
500
Increasing taxes on the refining of gasoline would most likely have this effect on the supply of gasoline in the short term.
What is a reduction?
500
A sharp and continuing rise in the cost of gasoline will have this effect on the demand curve for cars.
What is a shift to the left?