This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Supply > Supply – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 7 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What might businesses do if they expect prices to increase in the future? A) Encourage customers to buy now. B) Keep products off the market. C) Increase production now. D) Ship more products to stores. Show Answer Correct Answer: B) Keep products off the market. 2. A graph that shows the quantities supplied at each and every possible price in the market. A) Supply curve. B) Market supply curve. C) Supply schedule. D) Law of Supply. Show Answer Correct Answer: A) Supply curve. 3. Why do governments impose excise taxes on some goods? A) To provide for the safety of the food supply. B) To protect newly forming industries from foreign competition. C) To ensure that the wealthy pay a share of taxes. D) To discourage consumption of those goods. Show Answer Correct Answer: D) To discourage consumption of those goods. 4. With respect to supply, nature and the environment refer to: A) The impact of natural forces have on the ability to produce goods. B) How nature helps humanity be more productive. C) Relieving stress by spending time outdoors. D) How nature gets in the way of humanity being productive. Show Answer Correct Answer: A) The impact of natural forces have on the ability to produce goods. 5. Demand curves are derived while holding constant:A. incomes, tastes, and the price of other goods.B. income, tastes, and the price of the good.C. income and tastesD. tastes and the price of other goods A) C. B) D. C) A. D) B. Show Answer Correct Answer: C) A. 6. This factor changes supply based on the higher organizations wants and subsidies A) Number of Sellers. B) Consumer Income. C) Technology. D) Government Policies & Regulations. Show Answer Correct Answer: D) Government Policies & Regulations. 7. With respect to supply, "costs " refer to: A) How much consumers pay to purchase products. B) The amount producers spend to produce a product. C) All of the bills everyone in an economy has to pay. D) Hidden charges people don't expect when they sign agreements. Show Answer Correct Answer: B) The amount producers spend to produce a product. 8. When the government pays money to businesses, usually to encourage them to produce a certain product. A) Subsidies. B) Regulations. C) Taxes. D) Tarrif. Show Answer Correct Answer: A) Subsidies. 9. When the price of ham increases by 10%, the demand for ham decreases by 5%, and the demand for turkey increases by 15%. What is the cross-price elasticity between ham and turkey? A) -0.5. B) 2.0. C) -2.0. D) 1.5. Show Answer Correct Answer: D) 1.5. 10. Demand for a normal product may shift outwards if?A. Price decreasesB. The price of a substitute fallsC. The price of a complement risesD. income falls A) B. B) C. C) A. D) D. Show Answer Correct Answer: A) B. 11. Which of the following does not cause a change in supply? A) Government regulations. B) New Technology. C) Change in price. D) Changes in productivity. Show Answer Correct Answer: C) Change in price. 12. Which of the following leads to an decrease in supply? A) A decrease in the cost of raw materials. B) An increase in the cost of raw materials. C) A change in the law of supply. D) Diminishing marginal returns. Show Answer Correct Answer: B) An increase in the cost of raw materials. 13. The amount of money a business makes after deducting expenses is called A) Revenue. B) Overhead. C) Income. D) Profit. Show Answer Correct Answer: D) Profit. 14. What might cause the supply curve to shift left? A) Price of a complementary good decreases. B) Large number of producers enter the market. C) Computer processing improves production. D) A new law is passed requiring all new motorcycles to have back-up cameras. Show Answer Correct Answer: D) A new law is passed requiring all new motorcycles to have back-up cameras. 15. If the total product of worker number 5 had been 95, what would the variable cost have been? A) 540. B) 360. C) 450. D) 500. Show Answer Correct Answer: C) 450. 16. Which of the following is NOT a factor that can shift the supply curve? A) Technology. B) Cost of production. C) Tastes and Preferences. D) Taxes and subsidies. Show Answer Correct Answer: C) Tastes and Preferences. 17. Which of the following pairs best represent substitute goods? A) DVD's and DVD Players. B) Diet Sunkist and Diet Crush. C) Hot dogs and hot dog buns. D) Fruit roll ups and diet Coke. Show Answer Correct Answer: B) Diet Sunkist and Diet Crush. 18. Quantities offered at various prices by all firms that offer products for sale in a given market A) Supply. B) Total cost. C) Total product. D) Market supply curve. Show Answer Correct Answer: D) Market supply curve. 19. A government payment to an individual, business, or other group to encourage or protect a certain type of economic activity. A) Supply curve. B) Quantity supplied. C) Subsidy. D) Supply. Show Answer Correct Answer: C) Subsidy. 20. In a given market, how are the equilibrium price and the market-clearing price related? A) They are the same price. B) The equilibrium price exceeds the market-clearing price. C) The market-clearing price exceeds the equilibrium price. D) There is no relationship. Show Answer Correct Answer: A) They are the same price. 21. Which of these is not an influence on the quantity supplied from a firm A) Taxes or subsidies. B) Production cost. C) Taste or preference. D) Technology of production. Show Answer Correct Answer: C) Taste or preference. 22. All of the following are stages of production EXCEPT? A) Equaling returns. B) Diminishing returns. C) Negative returns. D) Increasing returns. Show Answer Correct Answer: A) Equaling returns. 23. Which factor could cause a change in supply? A) Technology. B) Labor Productivity. C) Producer Expectations. D) All of these. Show Answer Correct Answer: D) All of these. 24. The law of supply means that: A) The supply curve is downsloping. B) Producers will offer more of a product at high prices than they will at low prices. C) Consumers will purchase less of a good at high prices than they will at low prices. D) None of above. Show Answer Correct Answer: B) Producers will offer more of a product at high prices than they will at low prices. 25. Which of the following is not a variable cost? A) Labor. B) Shipping. C) Taxes. D) Electricity bills. Show Answer Correct Answer: C) Taxes. 26. Law of supply states that producers will offer ..... of a product as its price increases. A) None. B) Some. C) More. D) Less. Show Answer Correct Answer: C) More. 27. A government payment that supports a business ..... A) Excise tax. B) Subsidy. C) Regulation. D) Inputs. Show Answer Correct Answer: B) Subsidy. 28. How is the total cost of a factory determined? A) Marginal cost plus variable cost. B) Marginal cost plus fixed cost. C) Fixed cost plus variable cost. D) Marginal cost plus output cost. Show Answer Correct Answer: C) Fixed cost plus variable cost. 29. Supply-side economic policies are sometimes referred to as: A) Demand-side economics. B) Trickle-down economics. C) Tax revenue enhancements. D) Trickle-up economics. Show Answer Correct Answer: B) Trickle-down economics. 30. The ability and willingness to sell a good or service is called ..... A) Supply. B) Demand. C) Budget. D) Production. Show Answer Correct Answer: A) Supply. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 5Supply Quiz 6Supply Quiz 8Supply Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books