This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 11 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 11 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. In a given market, how are the equilibrium price and the market-clearing price related? A) There is no relationship. B) They are the same price. C) The market-clearing price exceeds the equilibrium price. D) The equilibrium price exceeds the market-clearing price. Show Answer Correct Answer: B) They are the same price. 2. Which of these is not an influence on the quantity supplied from a firm A) Production cost. B) Technology of production. C) Taste or preference. D) Taxes or subsidies. Show Answer Correct Answer: C) Taste or preference. 3. All of the following are stages of production EXCEPT? A) Increasing returns. B) Diminishing returns. C) Equaling returns. D) Negative returns. Show Answer Correct Answer: C) Equaling returns. 4. 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. 5. 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. 6. Which of the following is not a variable cost? A) Electricity bills. B) Labor. C) Shipping. D) Taxes. Show Answer Correct Answer: D) Taxes. 7. 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. 8. A government payment that supports a business ..... A) Excise tax. B) Subsidy. C) Inputs. D) Regulation. Show Answer Correct Answer: B) Subsidy. 9. How is the total cost of a factory determined? A) Marginal cost plus fixed cost. B) Fixed cost plus variable cost. C) Marginal cost plus variable cost. D) Marginal cost plus output cost. Show Answer Correct Answer: B) Fixed cost plus variable cost. 10. 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. 11. 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. 12. Profit is maximized when A) Marginal cost is less than marginal revenue. B) Marginal cost is equal to marginal revenue. C) Marginal cost is greater than marginal revenue. D) Marginal cost is growing at the same rate as marginal revenue. Show Answer Correct Answer: B) Marginal cost is equal to marginal revenue. 13. 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. 14. 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. 15. Which of the following is not a fixed cost? A) Executive salaries. B) Labor. C) Building Rent. D) Taxes. Show Answer Correct Answer: B) Labor. 16. Costs of production that do not change when output changes A) Total costs. B) Marginal costs. C) Fixed costs. D) Overhead. Show Answer Correct Answer: C) Fixed costs. 17. The demand for eggs decreases by 20% when the price of eggs increases by 10%. What is the elasticity of demand for eggs? A) 2.0. B) 0.5. C) 3.0. D) 0.2. Show Answer Correct Answer: A) 2.0. 18. 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. 19. 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. 20. 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. ← PreviousNext →Related QuizzesMicroeconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 5Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books