Econ Unit 2 Test Review pt.2

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  1. Raw Materials
    Unprocessed natural products used in production
  2. Variable Cost
    A cost that changes when the business rate of operation or output changes
  3. Production Function
    Relationship between changes in output to different amounts of a single input while other inputs are held constant
  4. Stages of production
    Increasing returns, diminishing returns, and negative returns
  5. e-commerce
    Electronic business or exchange conducted over the internet
  6. Fixed Cost
    Cost that a business acquires even if plant is stagnant and output is zero
  7. Overhead
    Total fixed cost
  8. Marginal Analysis
    Type of cost-benefit decision making that compares the extra benefits to extra costs of an action
  9. Total Cost
    Extra cost acquired when a business porduces one additional product
  10. Marginal Cost
    Extra Cost of producing one additional unit of production
  11. Price
    Signal to both producers and consumers. Decides WHAT, HOW, and FOR WHOM.
  12. Total Revenue
    Total Receipts; price of goods sold times quantity sold
  13. Marginal revenue
    Extra revenue associated with the production and sale of one addition unit of output.
  14. Rebate
    Partial refund of original price of product
  15. Break even point
    Total product the business needs to sell in order to cover its total costs
  16. Ration coupon
    Lets holder purchase certain amount of a product
  17. Surplus
    Quantity supplied is greater than quantity demanded
  18. Rationing
    Decides "fair share"
  19. Market Equilibrium
    Prices are stable, and quantity of output supplied is equal to quantity demanded
  20. Price Ceiling
    (Fixed Price), below equilibrium price
  21. Economic Model
    Helps analyze behavior and predict outcomes. (w/ Supply and Demand curves)
  22. Equilibrium price
    Price where quantity supplied equals quantity demanded; price that clears the market
  23. Target price
    Price floor for farm products
Card Set
Econ Unit 2 Test Review pt.2
Econ Unit 2 Test Review pt.2
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