This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Supply > Supply – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 5 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. If the price of a good is ..... than the equilibrium price, the supply of the good will be greater than the quantity of goods demanded. A) Resources. B) Higher. C) Supply. D) Lower. Show Answer Correct Answer: B) Higher. 2. Increased government regulations will cause which of the following? A) The supply curve will shift to the right (increase). B) The supply curve will shift to the left (decrease). C) The quantity supplied will increase. D) The quantity supplied will decrease. Show Answer Correct Answer: B) The supply curve will shift to the left (decrease). 3. All of the following can cause an increase in supply EXCEPT? A) An increase in productivity. B) A decrease in the cost of inputs. C) A change in taxes or subsidies. D) Fewer sellers in the market place. Show Answer Correct Answer: D) Fewer sellers in the market place. 4. In moving along a supply curve, what is changing? A) Taste. B) Income. C) Price. D) Resource cost. Show Answer Correct Answer: C) Price. 5. The stages of production are based on? A) The way total products change over time. B) The way marginal product changes as variable inputs are added. C) The way output changes independent of input. D) The way inputs change in response to business decisions. Show Answer Correct Answer: B) The way marginal product changes as variable inputs are added. 6. Getting back to the basics, what is opportunity cost? A) Maximizing efficiency at a price. B) What you give up to get something else. C) The price of an opportunity. D) The circle of life. Show Answer Correct Answer: B) What you give up to get something else. 7. The Law of Supply states that? A) The quantity supplied varies inversely with its price. B) The quantity supplied varies irregularly with its price. C) The quantity demanded varies inversely with its price. D) The quantity supplied varies directly with its price. Show Answer Correct Answer: D) The quantity supplied varies directly with its price. 8. The amount of goods and services that a person can produce in a given time is called A) Labor intensive. B) Labor output. C) Labor input. D) Labor productivity. Show Answer Correct Answer: D) Labor productivity. 9. Salazar's Sweets sells popsicles; because it is so hot (in October!), more people buy these popscicles. Salazar's now sells their sweets at a higher price. A) This is supply and demand. B) This is the law of demand. C) This is the law of supply. D) This is crazy. Show Answer Correct Answer: C) This is the law of supply. 10. Which of these do the producers of an item hope to achieve when adopting new technology? A) A shift of the supply curve for that item to the right. B) Repeal of the subsidy for that item. C) Inelasticity of supply of that item. D) A shift of the supply curve for that item to the left. Show Answer Correct Answer: A) A shift of the supply curve for that item to the right. 11. A decrease in quantity demanded A) Results in a movement downward and to the right along a demand curve. B) Results in a movement upward and to the left along a demand curve. C) Shifts the demand curve to the left. D) Shifts the demand curve to the right. Show Answer Correct Answer: B) Results in a movement upward and to the left along a demand curve. 12. Measure of the way in which quantity supplied responds to a change in price A) Supply curve. B) Subsidy. C) Supply elasticity. D) Supply. Show Answer Correct Answer: C) Supply elasticity. 13. The increasing age of the American population is an example of how A) Changing demographics can cause demand shifts. B) Demand does not always change when prices change. C) The law of ceteris paribus works. D) Lack of substitutes can blunt demand shifts. Show Answer Correct Answer: A) Changing demographics can cause demand shifts. 14. The central idea of supply-side economics is that certain types of tax cuts will increase: A) Money supply. B) Imports. C) Aggregate Demand. D) Aggregate Supply. Show Answer Correct Answer: D) Aggregate Supply. 15. A change in supply, caused by one of the determinants of supply, causes: A) The entire supply curve to shift to the right or left. B) No changes to the supply curve. C) Movement along the supply curve. D) None of the above. Show Answer Correct Answer: A) The entire supply curve to shift to the right or left. 16. When any effort by government causes the supply of a good to rise, what happens to the supply curve. A) A point on the curve moves up. B) The supply curve is not affected. C) It shifts to the right. D) It shifts to the left. Show Answer Correct Answer: C) It shifts to the right. 17. Change in the amount offered for sale in response to a price change; movement along the supply curve. A) Change in quantity supplied. B) Change in quantity demanded. C) Change in supply. D) Change in supply curve. Show Answer Correct Answer: A) Change in quantity supplied. 18. If determinants of supply lead to an increased level of production (Increase in Supply), the supply curve will shift A) To the Left. B) Stay constant. C) To the Right. D) Up. Show Answer Correct Answer: C) To the Right. 19. An increase in price all other things unchanged leads to? A. A shift in supply outwardsB. A shift in supply inwardsC. A contraction of supplyD. An extension of supply A) A. B) B. C) C. D) D. Show Answer Correct Answer: D) D. 20. Profits will be maximized when marginal revenue A) Is one-half marginal cost. B) Equals marginal cost. C) Is double marginal cost. D) Exceeds marginal cost. Show Answer Correct Answer: B) Equals marginal cost. 21. At a major factory, assume the wages paid to workers is reduced. This would A) Shift the supply curve to the left. B) Shift the supply curve to the right. C) Shift the demand curve to the left. D) Shift neither curve in any direction. Show Answer Correct Answer: B) Shift the supply curve to the right. 22. The ..... is a table that shows the relationship between the price of the good and the quantity supplied. A) Supply demand price. B) Supply schedule. C) Graph. D) The law of supply. Show Answer Correct Answer: B) Supply schedule. 23. The more people there are to sell products, the more products there are on the market. A) Number of Sellers. B) Consumer Expectations. C) Consumer Taste. D) Cost of Inputs. Show Answer Correct Answer: A) Number of Sellers. 24. (Athletic Equipment?) The price of athletic equipment has increased. A) Curve Shifts Left. B) Curve Shifts Right. C) Movement Along the Curve. D) None of above. Show Answer Correct Answer: C) Movement Along the Curve. 25. When excess demand occurs in an unregulated market, there is a tendency for?A. price to fallB. quantity supplied to decrease.C. price to riseD. quantity demanded to increase A) D. B) B. C) A. D) C. Show Answer Correct Answer: D) C. 26. A producer thinks the price of the product is going to increase, so he withholds supply? A) Movement up on the supply curve. B) Movemnt down the supply curve. C) Shifts left. D) Shifts right. Show Answer Correct Answer: C) Shifts left. 27. Assume the price of cars increases. We would call this a(n) A) Increase in supply. B) Decrease in supply. C) Increase in quantity supplied. D) Decrease in quantity supplied. Show Answer Correct Answer: C) Increase in quantity supplied. 28. All of the consumers who will purchase a particular product or service comprise a(n) A) Economy. B) Economic market. C) Market group. D) Supply. Show Answer Correct Answer: B) Economic market. 29. The supply curve is A) Downward sloping. B) Level. C) Upward sloping. D) Irregular. Show Answer Correct Answer: C) Upward sloping. 30. Identify the correct determinant of supply:Example:If the cost of electricity used to power an automotive factories falls, the supply of cars in the market increases A) Cost of production/resources. B) Number of sellers. C) Change in expectations. D) Change in technology. Show Answer Correct Answer: A) Cost of production/resources. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books