Eco- L 5.1 & 5.2- Test

_____________ states that when prices decrease, quantity supplied decreases, and when prices increase, quantity supplied increases.

• Law of Demand

• Law of Supply

• Law of Diminishing Marginal Utility

• Law of Business

___________ lists how much of a good or service an individual producer is willing and able to offer for sale at each price.

• Supply Chart

• Supply Curve

• Supply Box

• Supply schedule

A supply curve slope is upward because price and quantity supplied have a _____ relationship.

• direct

• indirect

• reverse

• opposite

_____ shows the data from a supply schedule in graph form

• Supply Curve

• Market supply schedule

• Individual supply schedule

• None of them

____ refers to the desire and ability to produce and sell a product.

• Demand

• Marginal supply

• Supply

• Marginal Utility

______ refers to having a worker focus on a particular aspect of production.

• Increasing returns

• Organization

• Business Focus

• Specialization

_________ is a company’s income from selling its products.

• Profit

• Total Revenue

• Total expense

• Loss

___________ costs are those that business owners incur no matter how much they produce

• Fixed

• Variable

• Marginal

• Non-Marginal

What changes for a company when it reaches the break-even point?

• The company’s total revenue has become as large as (or larger than) its total costs

• The company’s total revenue shrinks as large as (or larger than) its total expense

• Both of them

• None of them

2 Marks:

Categorize the following costs incurred by a bookstore owner as fixed or variable: electricity for extended holiday hours, wages, insurance, manager’s salary, rent, telephone.