This quiz works best with JavaScript enabled. Home > Economics > Microeconomics > Supply > Supply – Quiz 8 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 8 (30 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Profit is maximized when A) Marginal cost is equal to marginal revenue. B) Marginal cost is less than marginal revenue. C) Marginal cost is growing at the same rate as marginal revenue. D) Marginal cost is greater than marginal revenue. Show Answer Correct Answer: A) Marginal cost is equal to marginal revenue. 2. When the demand curve has shifted to the right, this suggests demand has A) Increased. B) Decreased. C) Quantity demanded has increased. D) Quantity demanded has increased. Show Answer Correct Answer: A) Increased. 3. When prices rise, supply levels will also increase. If prices drop, supply will also fall. A) Law of Demand. B) Cost of Production. C) Law of Supply. D) Determinants of Supply. Show Answer Correct Answer: C) Law of Supply. 4. Which of the following is not a fixed cost? A) Building Rent. B) Executive salaries. C) Taxes. D) Labor. Show Answer Correct Answer: D) Labor. 5. Costs of production that do not change when output changes A) Marginal costs. B) Total costs. C) Overhead. D) Fixed costs. Show Answer Correct Answer: D) Fixed costs. 6. The demand for eggs decreases by 20% when the price of eggs increases by 10%. What is the elasticity of demand for eggs? A) 0.5. B) 0.2. C) 3.0. D) 2.0. Show Answer Correct Answer: D) 2.0. 7. Factors that can cause a change in supply include A) Technology & government regulation. B) Taxes and resource cost. C) Number of producers and subsidies. D) All of the above. Show Answer Correct Answer: D) All of the above. 8. Different amounts offered for sale at each and every possible price in the market; shift of the supply curve. A) Change in demand. B) Change in supply. C) Change in quantity supplied. D) Quantity supplied. Show Answer Correct Answer: B) Change in supply. 9. When producers offer more of a good as its price increases and less as its price falls, this defines the A) Law of demand. B) Law of supply. C) Change in demand. D) Change in supply. Show Answer Correct Answer: B) Law of supply. 10. Suppose the demand for good Z goes up when the price of good Y goes down. We can say that goods Z and Y are?A. perfect substitutesB. complementsC. unrelated goods.D. substitutes. A) D. B) C. C) B. D) A. Show Answer Correct Answer: C) B. 11. Businesses pay the gov't, which helps pay for gov't services-but can lead to higher prices for their products A) Subsidies. B) Taxes. C) Cost of Production. D) Revenue. Show Answer Correct Answer: B) Taxes. 12. The act of controlling business behavior through a set of rules or laws A) Amendment. B) Supplication. C) Regulation. D) Resolution. Show Answer Correct Answer: C) Regulation. 13. An increase in the price of a complement for product A would?A. Shift demand for Product A outwardsB. Shift demand for product A inwardsC. Shift supply for product A outwardsD. Shift supply for product A inwards A) B. B) C. C) A. D) D. Show Answer Correct Answer: A) B. 14. What factors influence production decisions the most? A) Need to maximize profit & costs of production. B) Costs of production & the availability of substitutes. C) Need to maximize profit and the consumers' price expectations. D) Law of diminishing returns and total costs. Show Answer Correct Answer: A) Need to maximize profit & costs of production. 15. What are raw materials A) Materials that are freshly found. B) Substances used to make a product. C) Materials that are expired. D) Substances that are sold. Show Answer Correct Answer: B) Substances used to make a product. 16. What effect is working when the price of a good falls and consumers tend to buy it instead of other goods? A. The ceteris paribus effectB. The diminishing marginal utility effect.C. The substitution effectD. The income effect A) A. B) C. C) B. D) D. Show Answer Correct Answer: B) C. 17. What might cause the supply curve for apples to shift right? A) The price of a substitute good increases. B) New, more expensive government rules and regulations on apple farmers. C) Fuel and shipping costs rise. D) The cost of tractors and other equipment falls. Show Answer Correct Answer: D) The cost of tractors and other equipment falls. 18. If the price of a good is ..... than the equilibrium price, then the for that good will be greater than the supply available. A) Lower. B) The Same. C) Higher. D) Competition. Show Answer Correct Answer: A) Lower. 19. Responsiveness of quantity supplied to a change in price. A) Supply curve. B) Supply schedule. C) Supply inelasticity. D) Supply elasticity. Show Answer Correct Answer: D) Supply elasticity. 20. The federal minimum wage increases by $ 1 today. What happens to the supply of hamburgers 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. 21. The government has put a ban on all items that are unhealthy. No store can legally sell soda over 24 ounces. The supply of anything over 24 ounces becomes non-existent. What supply factor is this? A) Change in Technology. B) Change in Cost of Factors of Production. C) Government Action. D) None of above. Show Answer Correct Answer: C) Government Action. 22. What effect does resource prices have on the price of a good? A) The good becomes dependent on government regulation. B) The good becomes more expensive to produce. C) The good becomes cheaper to produce. D) It has no effect on the cost of the good. Show Answer Correct Answer: B) The good becomes more expensive to produce. 23. What does an inelastic demand curve look like? A) Steep slope. B) Shallow slope. C) Vertical line. D) Horizontal line. Show Answer Correct Answer: A) Steep slope. 24. An improvement in technology will ..... A) Shift the supply outwards. B) Shift the supply inwards. C) A movement along the supply curve with an extension in quantity supplied. D) None of above. Show Answer Correct Answer: A) Shift the supply outwards. 25. How do you find total profit? A) Adding fixed and variable costs. B) Subtracting fixed and variable costs. C) Subtracting total costs from total revenue. D) Multiplying marginal revenue by, marginal product. Show Answer Correct Answer: C) Subtracting total costs from total revenue. 26. Marketers are most interested in A) Price increases. B) Government regulation. C) Microeconomics. D) Macroeconomics. Show Answer Correct Answer: C) Microeconomics. 27. If the price elasticity of demand is unit then a fall in price?A. Reduces revenueB. Leaves revenue unchangedC. Increase revenueD. Reduces costs A) C. B) D. C) A. D) B. Show Answer Correct Answer: D) B. 28. A sudden increase in fuel costs sparks a rise in both prices and demand for fuel-efficient cars. Yet it takes over a year for car companies to manufacture more cars. In this case, the supply for cars is A) Static. B) Inelastic. C) Inferior. D) Elastic. Show Answer Correct Answer: B) Inelastic. 29. If demand is ..... then price cuts will ..... spending? A. inelastic; increaseB. elastic; increaseC. elastic, decreaseD. none of the above A) C. B) D. C) A. D) B. Show Answer Correct Answer: D) B. 30. The law of demand implies that?A. as prices rise, demand decreaseB. as prices fall, quantity demanded increaseC. as prices fall demand increasesD. as prices rise, quantity demanded increases A) C. B) A. C) D. D) B. Show Answer Correct Answer: D) B. ← PreviousNext →Related QuizzesMicroeconomics QuizzesEconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 5Supply Quiz 6Supply Quiz 7Supply Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books