This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Supply > Supply – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 3 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is determined by dividing change in total cost by change in total product? A) Variable Costs. B) Marginal Cost. C) Marginal Utility. D) Marginal Product. Show Answer Correct Answer: B) Marginal Cost. 2. What is the definition for "fast-moving consumer good" ? A) Goods bought by people which involve fast movement. B) Goods that sell very quickly in small amounts. C) Goods that sell very quickly in large amounts. D) Goods that are transported quickly in large amounts. Show Answer Correct Answer: C) Goods that sell very quickly in large amounts. 3. Which of the following best describes supply? A) The amount of a product offered for sale at all possible prices. B) The amount of a product people are willing to buy at all possible prices. C) The amount of a product people are willing to trade for. D) None of above. Show Answer Correct Answer: A) The amount of a product offered for sale at all possible prices. 4. Quantity supplied is ..... A) The amount of a good that sellers are willing and able to sell. B) The amount a supplier is willing buy from another supplier. C) Is the quantity consumers are willing to give up. D) None of the above. Show Answer Correct Answer: A) The amount of a good that sellers are willing and able to sell. 5. What are variable expenses? A) Irregular expenses that change from week to week or month to month. B) The amount of money in your bank account. C) Costs that do not fluctuate from week to week or month to month. D) The amount of cash in your purse/wallet. Show Answer Correct Answer: A) Irregular expenses that change from week to week or month to month. 6. In general, if the price of a good or service goes up, what happens to the supply for that good or service? A) Supply goes up. B) Supply goes down. C) Supply stays the same. D) None of the above. Show Answer Correct Answer: A) Supply goes up. 7. What is elasticity? A) The means by which total revenue is measured. B) A measure in the responsiveness to a change is price. C) The stretchy-ness of a rubber band. D) None of above. Show Answer Correct Answer: B) A measure in the responsiveness to a change is price. 8. Which factor might cause an increase in the supply of a product? A) A decrease in productivity. B) The introduction of new technology. C) An increase in the cost of raw materials. D) Fewer sellers in the marketplace. Show Answer Correct Answer: B) The introduction of new technology. 9. If a new, huge oil reservoir was found in Ohio, this would cause the ..... curve for oil and gas to shift ..... A) Demand right. B) Demand left. C) Supply right. D) Supply left. Show Answer Correct Answer: C) Supply right. 10. A producer will cause a surplus: A) If the price of a good is too high. B) If the price of a good is too low. C) If the price is set at the equilibrium price. D) None of above. Show Answer Correct Answer: A) If the price of a good is too high. 11. What provides a concise description of how producers behave? A) Marginal Utility. B) Law of Supply. C) Law of Demand. D) Law of diminishing marginal utility. Show Answer Correct Answer: B) Law of Supply. 12. Which of the following policies would be supported by a supply-side economist? A) Longer duration of unemployment benefits. B) Higher taxes on corporate profits. C) Removal of investment tax credits. D) Lower tax rates on interest earned from savings. Show Answer Correct Answer: D) Lower tax rates on interest earned from savings. 13. The willingness and ability of businesses to sell more when price rises and less when it drops. A) Demand. B) Supply. C) Shifters of Supply. D) Law of Supply. Show Answer Correct Answer: D) Law of Supply. 14. All of the following are examples of variable costs EXCEPT A) Freight. B) Interest payments on bonds. C) Electricity. D) Labor. Show Answer Correct Answer: B) Interest payments on bonds. 15. What can cause the supply curve for a product to shift to the right? A an increase in demand for the product B an increase in government subsidies to producers C an increase in indirect taxes on the product D an increase in the costs of production A) B. B) A. C) C. D) D. Show Answer Correct Answer: A) B. 16. The total quantity that can be brought into the market at a point of time is A) Stock. B) Supply. C) Demand. D) None of the above. Show Answer Correct Answer: A) Stock. 17. A movement upward and to the left along a demand curve is called a(n) A) Increase in demand. B) Decrease in demand. C) Decrease in quantity demanded. D) Increase in quantity demanded. Show Answer Correct Answer: C) Decrease in quantity demanded. 18. With respect to supply, improvements in technology: A) Drive the costs of production down. B) Allows greater production even when other resources remain the same. C) Allows producers to provide more of a product than previously possible. D) All these answers are true! orange+red+blue. Show Answer Correct Answer: D) All these answers are true! orange+red+blue. 19. Stage of production where output increases at a decreasing rate as more units of variable input are added. A) Stage II. B) Diminishing returns. C) Stage I. D) Contributes. Show Answer Correct Answer: B) Diminishing returns. 20. A local neighborhood has many houses for sale at a low price, but demand for houses is low. What kind of market most likely exists in this neighborhood? A) Seller's. B) Inelastic. C) Buyer's. D) Discretionary. Show Answer Correct Answer: C) Buyer's. 21. When the demand curve shifts to the left, this suggests demand has A) Increased. B) Decreased. C) Quantity demanded has increased. D) Quantity demanded has decreased. Show Answer Correct Answer: B) Decreased. 22. If the demand for coffee decreases as income decreases, coffee is?A. an inferior goodB. a normal goodC. a complementary goodD. a substitute good A) D. B) C. C) A. D) B. Show Answer Correct Answer: D) B. 23. As opposed to movement along the supply curve, a change (shift) in the entire supply curve is a result of ..... A) An increase in price. B) A change in price and availability. C) A decrease in price. D) A change in something other than price. Show Answer Correct Answer: D) A change in something other than price. 24. This factor covers how producers look into future markets and makes the decision of when to supply their product A) Price of Related Goods. B) Consumer Expectations. C) Consumer Income. D) Producer Expectations. Show Answer Correct Answer: D) Producer Expectations. 25. Congress passes a law which pays farmers to produce less crops starting today. What happens to the supply of crops today? A) Increase in supply. B) Decrease in supply. C) No change in supply. D) None of above. Show Answer Correct Answer: B) Decrease in supply. 26. According to the Law of Supply, as price increases, quantity supplied ..... ? A) Increases. B) Decreases. C) No change. D) None of above. Show Answer Correct Answer: A) Increases. 27. Which of the following is NOT a factor that shirts demand? A) Tastes and preferences. B) Price of related goods. C) Cost of production. D) Number of buyers. Show Answer Correct Answer: C) Cost of production. 28. A price ceiling is when A) The government sets a maximum price for a good. B) The government sets a minimum price of a good. C) The government allows the market to decide the price for a good. D) The government sets an equlibrium price. Show Answer Correct Answer: A) The government sets a maximum price for a good. 29. What effect do taxes on production usually have on the supply curve? A) Decreases supply, supply curve shifts right. B) Increases supply, supply curve shifts left. C) Decreases supply, supply curve shifts left. D) Increases supply, supply curve shifts right. Show Answer Correct Answer: C) Decreases supply, supply curve shifts left. 30. Production cost that varies as output changes; labor, energy, raw materials A) Variable cost. B) Marginal cost. C) Total cost. D) Fixed costs. Show Answer Correct Answer: A) Variable cost. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 4Supply Quiz 5Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books