| Question | Answer |
| resource costs | the cost of wages and raw materials for producing a product |
| Law of Diminishing Returns | As more units of a certain variable input are added to a constant amount of other resources total output keeps rising but only a diminishing rate |
| technology | causes an increase in supply without increasing resources |
| taxes | fee charged by the government that increases supply and raises the cost |
| shortage | where Qd > Qs |
| surplus | where Qs > Qd |
| Law of Supply | the rule that states more will be offered to sell at higher prices than at lower prices |
| producer | the person who combines resources and sells them in the market |
| Resource Market | where land, labor, capital are exchanged for rent, wages, and capital |
| Inelastice Supply | when a change in price has little impact on Qs |
| Capital goods | Goods used to produce other goods, causes economic growth |
| Scarcity | the fundamental problem of Economis, satisfying unlimited wants with limited resouces |
| Elastic Supply | supply that is very responsive to the price |
| Product Market | where goods and services are exchanged |
| alternative outputs | other products that can be produced with the same resources (pizza or pretzels) |
| subsidy | free money from the government to protect an certain economic activity |
| Opportunity Cost | the cost of the next best alternative use of time, money or resources when one choice is made rather than another |
| equilibrium | agreed upon price by the producer and the consumer; where Qs = Qd |
| Supply | The schedule of quantities offered for sale at all possible prices in the market. |
| Factors of Production | land, labor, capital, entrepreneurs |
