Econ Chapter 5 Vocab

Front 1

supply

Back 1

a stock of a resource from which a person or place can be provided with the necessary amount of that resource.

Front 2

supply schedule

Back 2

tabular depiction of the relationship between price and quantity supplied, represented graphically as a supply curve.

Front 3

supply curve

Back 3

graphic representation of the relationship between product price and quantity of product that a seller is willing and able to supply.

Front 4

quantity supplied

Back 4

the quantity of a commodity that producers are willing to sell at a particular price at a particular point of time.

Front 5

subsidy

Back 5

a sum of money granted by the government or a public body to assist an industry or business so that the price of a commodity or service may remain low or competitive.

Front 6

supply elasticity

Back 6

The price elasticity of supply (PES) is the measure of the responsiveness in quantity supplied (QS) to a change in price for a specific good

Front 7

short run

Back 7

it is the concept that within a certain period of time, in the future, at least one input is fixed while others are variable.

Front 8

long run

Back 8

A period of time in which all factors of production and costs are variable.

Front 9

production function

Back 9

used to definemarginal product and to distinguish allocative efficiency, the defining focus of economics.

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raw materials

Back 10

A material or substance used in the primary production or manufacturing of a good.

Front 11

marginal product

Back 11

the change in output resulting from employing one more unit of a particular input

Front 12

diminishing returns

Back 12

used to refer to a point at which the level of profits or benefits gained is less than the amount of money or energy invested.

Front 13

overhead

Back 13

An accounting term that refers to all ongoing business expenses not including or related to direct labor, direct materials or third-party expenses that are billed directly to customers.

Front 14

variable costs

Back 14

costs that vary depending on a company's production volume; they rise as production increases and fall as production decreases.

Front 15

total revenue

Back 15

the total sales of a firm based on a given quantity of goods.

Front 16

break even point

Back 16

the point at which total cost and total revenue are equal: there is no net loss or gain, and one has "broken even."

Front 17

depreciation

Back 17

the gradual decrease in the economicvalue of the capital stock of a firm, nation or other entity, either through physical depreciation, obsolescence or changes in the demand for the services of the capital in question.

Front 18

e-commerce

Back 18

A type of business model, or segment of a larger business model, that enables a firm or individual to conduct business over an electronic network, typically the internet.