Give ONE term for each of the following descriptions. Write only the term next to the question numbers (1.3.1 to 1.3.6) in the ANSWER BOOK. Abbreviations, acronyms and examples will NOT be accepted.

Here are the terms for each description:

• 1.3.1 A period of time that the business is unable to increase at least one of its inputs.
  • Short run
• 1.3.2 The minimum level of profit that is needed to keep the entrepreneur from leaving the industry.
  • Normal profit
• 1.3.3 The quantity supplied of a commodity increases or decreases because of a change in the price of the commodity.
  • Change in quantity supplied
• 1.3.4 Measures the revenue for selling each additional unit of output.
  • Marginal revenue
• 1.3.5 A good that demanded in smaller quantities when the income levels of consumers rise.
  • Inferior good
• 1.3.6 The sum of fixed and variable costs incurred in the production of goods and services.
  • Total cost