This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 2 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 2 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. Which of these is NOT a fixed cost? A) Rent. B) Machinery Repair. C) Property Taxes. D) Safety Equipment. Show Answer Correct Answer: D) Safety Equipment. 2. When demand for a good is elastic, it is most likely to have ..... A) No complementary goods. B) No substitutes. C) Many subsitutes. D) Many complementary goods. Show Answer Correct Answer: C) Many subsitutes. 3. A movement along the demand curve to the left may be caused by?A. a decrease in supply.B. a rise in incomeC. a fall in the number of substitute goodsD. a rise in the price of inputs A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 4. If the technology used to produce a good improves, supply will A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: A) Increase. 5. Which ONE of these is a Variable Cost? A) Salaries. B) Rent. C) Electricity and Gas. D) Property Taxes. Show Answer Correct Answer: C) Electricity and Gas. 6. A producer will cause a shortage: A) If the price of a good is too high. B) If the price of a good is too low. C) If the price is set at the equilibrium price. D) None of above. Show Answer Correct Answer: B) If the price of a good is too low. 7. If a 4% increase in price leads to a increase in the quantity supplied of 8%?A. Supply is price elasticB. Supply is income elasticC. Price elasticity of demand is-2D. Price elasticity of supply is-2 A) A. B) B. C) C. D) D. Show Answer Correct Answer: A) A. 8. Self check out counters are just one of the factors that can shift the supply curve. A) Consumer Income. B) Technology. C) Producer Expectations. D) Government Policies. Show Answer Correct Answer: B) Technology. 9. How does new technology affect supply? A) Decreases supply. B) Increases supply because it increases cost. C) It lowers cost and increases supply. D) It has very little effect on production. Show Answer Correct Answer: C) It lowers cost and increases supply. 10. What might cause the supply curve to shift right? A) Price of a substitute good increases. B) New government regulations. C) A popular toys loses appeal. D) Labor unions accept large decrease in wages. Show Answer Correct Answer: D) Labor unions accept large decrease in wages. 11. New technology produces coca-cola cans twice as fast. How would this affect the supply of coca-cola cans? A) Shift right (supply increases). B) Shift left (supply decreases). C) Quantity supplied increases. D) Quantity supplied decreases. Show Answer Correct Answer: A) Shift right (supply increases). 12. When employees are getting in each others way, the firm is operating A) In stage 1 of the production. B) In stage 2 of the production. C) In stage 3 of the production. D) As much as it possibly can. Show Answer Correct Answer: C) In stage 3 of the production. 13. The willingness and ability of a producer to make a product is referred to as A) Quantity supplied. B) Quantity demanded. C) Supply. D) Demand. Show Answer Correct Answer: C) Supply. 14. A firm is ..... A) An organisation that brings together the factors of production in order to produce inputs. B) An organisation that brings together the factors of production in order to produce outputs. C) An organisation that brings together outputs to create inputs. D) None of above. Show Answer Correct Answer: B) An organisation that brings together the factors of production in order to produce outputs. 15. When the selling price of a good goes down, what happens to the quantity supplied? A) It increases. B) It does not change. C) It decreases. D) It increases the cost of production. Show Answer Correct Answer: C) It decreases. 16. Which government tool can cause changes in supply levels and force the supply curve to shift? A) Taxes. B) Subsidies. C) Regulations. D) All the options mentioned. Show Answer Correct Answer: D) All the options mentioned. 17. When the price of the product changes and has an affect on supply, makes it an ..... supply. A) Elastic. B) Inelastic. C) Rubber band. D) Electric. Show Answer Correct Answer: A) Elastic. 18. How are price ceilings and price floors similar? A) Both involve the government's setting of a maximum price. B) Both represent input changes that affect demand. C) Both bring about disequilibrium in the market. D) Both are examples of government price supports. Show Answer Correct Answer: C) Both bring about disequilibrium in the market. 19. Subsides from the government ..... A) Generally lower cost, which allows a firm to produce more goods. B) Generally increase cost, which forces the firm to produce fewer goods. C) Have little impact. D) Were outlawed in 1985. Show Answer Correct Answer: A) Generally lower cost, which allows a firm to produce more goods. 20. ..... is the result of quantity supplied being greater than quantity demanded A) Surplus. B) Shortage. C) Price floor. D) Price ceiling. Show Answer Correct Answer: A) Surplus. ← PreviousNext →Related QuizzesMicroeconomics QuizzesSupply Quiz 1Supply 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