This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 12 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 12 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. 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) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 2. Businesses pay the gov't, which helps pay for gov't services-but can lead to higher prices for their products A) Taxes. B) Revenue. C) Subsidies. D) Cost of Production. Show Answer Correct Answer: A) Taxes. 3. The act of controlling business behavior through a set of rules or laws A) Supplication. B) Resolution. C) Amendment. D) Regulation. Show Answer Correct Answer: D) Regulation. 4. 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) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 5. 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. 6. What are raw materials A) Substances that are sold. B) Materials that are expired. C) Materials that are freshly found. D) Substances used to make a product. Show Answer Correct Answer: D) Substances used to make a product. 7. 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) B. C) C. D) D. Show Answer Correct Answer: C) C. 8. 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. 9. If the price of a good is ..... than the equilibrium price, then the for that good will be greater than the supply available. A) The Same. B) Higher. C) Competition. D) Lower. Show Answer Correct Answer: D) Lower. 10. Responsiveness of quantity supplied to a change in price. A) Supply elasticity. B) Supply inelasticity. C) Supply curve. D) Supply schedule. Show Answer Correct Answer: A) Supply elasticity. 11. 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. 12. 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. 13. What effect does resource prices have on the price of a good? A) The good becomes dependent on government regulation. B) The good becomes cheaper to produce. C) The good becomes more expensive to produce. D) It has no effect on the cost of the good. Show Answer Correct Answer: C) The good becomes more expensive to produce. 14. 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. 15. 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. 16. 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. 17. Marketers are most interested in A) Microeconomics. B) Macroeconomics. C) Price increases. D) Government regulation. Show Answer Correct Answer: A) Microeconomics. 18. If the price elasticity of demand is unit then a fall in price?A. Reduces revenueB. Leaves revenue unchangedC. Increase revenueD. Reduces costs A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 19. 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) Inelastic. B) Elastic. C) Static. D) Inferior. Show Answer Correct Answer: A) Inelastic. 20. If demand is ..... then price cuts will ..... spending? A. inelastic; increaseB. elastic; increaseC. elastic, decreaseD. none of the above A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. ← 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