Economics Chapter 5 Review

What is the primary reason for firms to exist?

• To provide goods & services that people need

• To make a profit

• To provide for the common good

• To use as many resources as possible

The quantity of a good or service that a firm is willing and able to supply at a particular price in a given time

• Supply

• Quantity Supplied

The relationship between price and quantity supplied...AKA all possible quantities supplied at every possible price

• Supply

• Quantity Supplied

Which of the following statements is true according to the law of supply?

• As price increases, quantity supplied increases

• As price decreases, quantity supplied increases

A table that lists the quantities supplied by a firm at every possible price

• Supply Schedule

• Supply Curve

• Demand Schedule

• Demand Curve

A graph representing the data from a supply schedule

• Supply Schedule

• Supply Curve

• Demand Schedule

• Demand Curve

The relationship between price and quantity supplied in regards to ALL firms in the market

• Supply

• Market Supply

• Quantity Supplied

• Supply Curve

Which of the following is NOT a condition that must be met to have perfect competition?

• Identical goods from different firms

• Many firms supplying the good

• Consumers being aware of price and having choices

• One firm has a monopoly over the market

If the price of a good changes, there will be a...

• Change in supply

• Change in quantity supplied

• No change in supply or quantity supplied

If there is a change in quantity supplied, there will be a...

• Movement along the supply curve

• Shift of the supply curve to the left or right