This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Supply > Supply – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 4 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is the equation for Total Revenue A) Price times Quantity Demanded. B) Price divided by quantity demanded. C) Quantity demanded divided by price. D) Quantity supplied times price. Show Answer Correct Answer: A) Price times Quantity Demanded. 2. Besides price, supply can shift due to factors that are known as ..... A) Competition. B) Determinants. C) Demand. D) Price of Resources. Show Answer Correct Answer: B) Determinants. 3. Which of the following best describes inelastic demand? A) Limited to luxury goods. B) Fluctuating. C) Not affected by price change. D) Variable. Show Answer Correct Answer: C) Not affected by price change. 4. A table showing the quantities produced or offered for sale at each and every possible price in the market at a given point in time. A) Supply schedule. B) Demand schedule. C) Supply curve. D) Market supply curve. Show Answer Correct Answer: A) Supply schedule. 5. Which of the following policies is a component of supply-side fiscal policy? A) An increase in the money supply. B) Higher taxes on research and development. C) Lower taxes on income. D) An increase in government spending. Show Answer Correct Answer: C) Lower taxes on income. 6. What will happen if the government decided to subsidize the production of bobble-head dolls? A) The demand for bobble-heads will decrease. B) The supply curve will shift to the right. C) The supply curve will shift to the left. D) The demand for bobble-heads will equal the supply. Show Answer Correct Answer: B) The supply curve will shift to the right. 7. If a business has relatively low variable costs (like a one man gas station), how should they operate A) Should be open until midnight. B) Should be open 24 hours a day. C) Should operate only during the day to save on electricity. D) Should be open 9-5 because of variable cost. Show Answer Correct Answer: B) Should be open 24 hours a day. 8. Levi's (jean company) will pay its workers $ 1.50 more per hour. What happens to the market for jeans? A) Demand Increase. B) Supply Increase. C) Demand Decrease. D) Supply Decrease. Show Answer Correct Answer: D) Supply Decrease. 9. According to the Law of Supply, which of these would happen to an item as its price rose? A) Producers would lower the price on similar items. B) Producers would increase the price even more. C) Producers would make less of it. D) Producers would make more of it. Show Answer Correct Answer: D) Producers would make more of it. 10. A shift in the demand curve means that A) There is always an increase in prices. B) There is a change in quantity demanded at every price. C) There is always a decrease in both price and quantity demanded. D) There is always an increase in quantity demanded. Show Answer Correct Answer: B) There is a change in quantity demanded at every price. 11. A new conveyor belt advances the rate at which furniture can be assembled. Why does this change the supply? A) Change in cost of inputs. B) Changes in the number of producers. C) Changes in expectations. D) Change in technology. Show Answer Correct Answer: D) Change in technology. 12. When economists use ceteris paribus, they are looking for what happens to supply and demand when only the ..... changes. A) Price. B) Quantity supplied. C) Quantity demanded. D) Quantity. Show Answer Correct Answer: A) Price. 13. Which of the following is a characteristic of a seller's market? A) Large supply. B) High prices. C) Small demand. D) Low profits. Show Answer Correct Answer: B) High prices. 14. Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.? A) Quantity supplied would decrease. B) Supply would stay the same. C) Supply would increase. D) Supply would decrease. Show Answer Correct Answer: D) Supply would decrease. 15. Total cost is the sum of A) Fixed costs and marginal costs. B) Fixed costs and variable costs. C) Marginal costs and variable costs. D) Fixed, marginal, and variable costs. Show Answer Correct Answer: B) Fixed costs and variable costs. 16. A surplus can be expected whenever: A) Quantity demanded is greater than quantity supplied. B) Quantity supplied is greater than quantity demanded. C) Quantity supplied and quantity demanded are equal to the equilibrium. D) None of above. Show Answer Correct Answer: B) Quantity supplied is greater than quantity demanded. 17. When the price of a product goes down, what happens to producers? A) Existing producers expand. B) Some produce less, and others leave the market. C) Existing firms continue their usual output. D) New firms enter the market. Show Answer Correct Answer: B) Some produce less, and others leave the market. 18. What is the law of supply? A) The lower the price, the larger the quantity produced. B) A smaller the quantity will be produced because the price is higher. C) The lower the price, the smaller the quantity produced. D) Price doesn't affect the manufacturers production of a good. Show Answer Correct Answer: C) The lower the price, the smaller the quantity produced. 19. Tax on the production or sale of a specific good or service A) Excise Tax. B) Income Tax. C) Regressive Tax. D) Progressive Tax. Show Answer Correct Answer: A) Excise Tax. 20. Payment to the government on the production or sale of a good is ..... A) A regulation. B) A tax. C) An input. D) A subsidy. Show Answer Correct Answer: B) A tax. 21. An increase in the number of sellers tends to ..... A) Increase the amount of a product available in a market. B) Shift the supply curve to the left. C) Mean everyone who sells gets really rich quick. D) Make little difference in the availability of a product. Show Answer Correct Answer: A) Increase the amount of a product available in a market. 22. Labor in a factory is an example of which of these? A) Technology. B) Investment. C) Resource cost. D) Market size. Show Answer Correct Answer: C) Resource cost. 23. An increase in taxes will shift the supply curve for steel ..... A) To the right. B) To the left. C) Not at all. D) Will cause demand to decrease. Show Answer Correct Answer: B) To the left. 24. A graph of the information in a supply schedule creates which of the following? A) A demand curve. B) The quantity of goods demanded. C) A supply curve. D) The supply of goods available. Show Answer Correct Answer: C) A supply curve. 25. If a seller expects the price of a good to rise in the future, the seller will ..... A) Store these goods until the price goes up. B) Place these goods on the market immediately. C) Increase production of a good. D) Increase the price of the good now. Show Answer Correct Answer: A) Store these goods until the price goes up. 26. Cost-benefit decisions making that compares the extra benefits to the extra costs of an action is called? A) Marginal output. B) Marginal analysis. C) Marginal revenue. D) Marginal costs. Show Answer Correct Answer: B) Marginal analysis. 27. An "increase in the quantity supplied [QS]" means a: A) Rightward shift of the supply curve. B) Movement up along the supply curve. C) Movement down along the supply curve. D) Leftward shift of the supply curve. Show Answer Correct Answer: B) Movement up along the supply curve. 28. When quantity demanded is more than quantity supplied A) Surplus. B) Shortage. C) Price ceiling. D) Equilibrium. Show Answer Correct Answer: B) Shortage. 29. The supply curve slopes upward because A) Price and quantity are inversely related. B) Consumers prefer lower prices to higher ones. C) Production costs rise as more output is produced. D) Firms make less profit at higher prices. Show Answer Correct Answer: C) Production costs rise as more output is produced. 30. The main factor that causes a change in supply is ..... A) Price of Related Goods. B) Subsidies. C) Taxes. D) Price. Show Answer Correct Answer: D) Price. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 5Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books