This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Total amount earned by a firm from the sale of its products; average price of a good sold times the quantity sold. A) Total revenue. B) Average revenue. C) Marginal revenue. D) Profit-maximizing quantity of output. Show Answer Correct Answer: A) Total revenue. 2. The price of a chair has increased by 25% and the PES= 4. What is the percentage change in quatity suppiled? A) 4%. B) 1000%. C) 100%. D) 40%. Show Answer Correct Answer: C) 100%. 3. If soy milk and almond milk are considered substitute goods, then that means ..... A) One good is often used together with the other. B) One good is often used in place of the other. C) The two goods are unrelated. D) At least one good is considered a luxury good. Show Answer Correct Answer: B) One good is often used in place of the other. 4. The price of bread rose by 5% and the quantity demanded fell by 4%. What was the price elasticity of demand for bread? A-0.4 B-0.8 C-1.25 D-2.0 A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 5. If you are going to buy a new bed mattress, and the salesman tells you there will actually be a sale on mattresses in a week, what will that do to your demand for mattresses in that moment? A) Decrease. B) Increase. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Decrease. 6. The time period needed to make changes according to the market requirement is A) Long period. B) Short period. C) Market period. D) None of above. Show Answer Correct Answer: A) Long period. 7. All of the following can change the supply curve EXCEPT A) Cost of labor. B) Change in demand for the product. C) Xpectation that prices are about to increase. D) # of sellers. Show Answer Correct Answer: B) Change in demand for the product. 8. When a consumer is willing and able to buy a good or service, he/she creates which of the following? A) Consumption. B) Demand. C) Supply. D) Allocation. Show Answer Correct Answer: B) Demand. 9. A company pays for their employees to receive extra training? A) Shifts right. B) Shifts left. C) Movement up the supply curve. D) Movement down the supply curve. Show Answer Correct Answer: A) Shifts right. 10. A company invests in new technology, but the new machines are constantly breaking down? A) Shifts right. B) Shifts left. C) Movement up the supply curve. D) Movement down the supply curve. Show Answer Correct Answer: B) Shifts left. 11. According to the law of demand, what is the relationship between quantity demanded and price? A) A complementary relationship. B) An inverse relationship. C) A direct relationship. D) A substitutionary relationship. Show Answer Correct Answer: B) An inverse relationship. 12. Which of the following will NOT cause the supply curve to shift? A) A change in resource costs. B) A technological change. C) A change in the price of the good. D) Change in taxes. Show Answer Correct Answer: C) A change in the price of the good. 13. The price of burgers increase by 22% and the quantity of burgers demanded falls by 25% This indicates that demand for burgers is?A. elasticB. perfectly elasticC. unitarily elasticD. inelastic. A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 14. What affect do excise taxes on production usually have on the supply curve? A) Decreases supply, supply curve shifts left. B) Increases supply, supply curve shifts left. C) Decreases supply, supply curve shifts right. D) Increases supply, supply curve shifts right. Show Answer Correct Answer: A) Decreases supply, supply curve shifts left. 15. Total cost is the sum of the A) Fixed costs overhead. B) All variable costs. C) Fixed and variable costs. D) Fixed and marginal costs. Show Answer Correct Answer: C) Fixed and variable costs. 16. Shifting the supply curve either left or right demonstrates A) A change in quantity supplied. B) A change in quantity demanded. C) A change in supply. D) A change in demand. Show Answer Correct Answer: C) A change in supply. 17. Supply is likely to be more price elastic?A. In the short run rather than the long runB. If factors of production are relatively immobile between industriesC. If there are very few producersD. If it is easy to expand output A) A. B) B. C) C. D) D. Show Answer Correct Answer: D) D. 18. Rent payments and property taxes would be counted as A) Total cost. B) Variable costs. C) Fixed costs. D) Marginal costs. Show Answer Correct Answer: C) Fixed costs. 19. Which of the following leads to an increase in the supply of furniture? A) Furniture prices rise. B) Six new companies begin producing furniture. C) The price of necessary raw materials goes up. D) There is no change in productive technology. Show Answer Correct Answer: B) Six new companies begin producing furniture. 20. Which of the following pairs is NOT an example of complements? A) Football jersey and shoulder pads. B) IPod and iPad. C) Bicycle and helmet. D) Computer and charging cord. Show Answer Correct Answer: B) IPod and iPad. Next →Related QuizzesMicroeconomics QuizzesSupply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 5Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9Supply Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books