This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 3 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 3 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The total cost of production is determined by? A) Adding fixed and variable costs. B) Adding marginal product changes as variable inputs are added. C) The way inputs change in response to business decisions. D) The way output changes independent of input. Show Answer Correct Answer: A) Adding fixed and variable costs. 2. What will cause a decrease in supply for "oranges" ? A) Decrease in the price of oranges. B) An increase in the price of oranges. C) Increase in the cost of labor producing oranges. D) None of above. Show Answer Correct Answer: C) Increase in the cost of labor producing oranges. 3. When a good's price changes and we show that by moving from one point to another on the supply curve, we call that 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: A) A change in quantity supplied. 4. Anything used to produce a good or service is ..... A) Labor. B) Factor of Production. C) Capital. D) A change in elasticity. Show Answer Correct Answer: B) Factor of Production. 5. What happens when the price of automobiles increases? A) Increase in supply. B) Increase in quantity supplied. C) Decrease in supply. D) Decrease in quantity supplied. Show Answer Correct Answer: B) Increase in quantity supplied. 6. According to the law of demand, when the price of pizza goes up which of the following will occur? A) Pizza restaurants will stop making pizza. B) Pizza restaurants will make more money. C) Consumers will save more money. D) Consumers will buy less pizza. Show Answer Correct Answer: D) Consumers will buy less pizza. 7. Which of the following goods would be considered a complement to flashlights in the context of a demand for goods? A) Batteries. B) Candles. C) Floodlights. D) Binoculars. Show Answer Correct Answer: A) Batteries. 8. Which of the following is an example of government influence on supply? A) Law of supply. B) Subsidies. C) Marginal costs. D) Market supply curve. Show Answer Correct Answer: B) Subsidies. 9. A situation in which resources are distributed according to price A) Rationing. B) Black market. C) Supply shock. D) Free market. Show Answer Correct Answer: D) Free market. 10. Inferior goods react ..... to income shifts. A) Directly. B) Sometimes. C) Constantly. D) Inverse. Show Answer Correct Answer: D) Inverse. 11. If the number of firms in a particular market decreases, supply will A) Increase. B) Decrease. C) Stay the same. D) None of above. Show Answer Correct Answer: B) Decrease. 12. The price at which the quantity demanded by consumers equals the quantity suppled by the producers is know as what? A) Competition. B) The Law of Supply. C) The Law of Demand. D) The Equilibrium Price. Show Answer Correct Answer: D) The Equilibrium Price. 13. The price of home computers rises. According to the law of supply, manufactures will respond to this price increase A) By increasing computer production. B) By decreasing computer production. C) By halting computer production. D) By keeping computer production steady. Show Answer Correct Answer: A) By increasing computer production. 14. How do subsidies help producers? A) They increase costs. B) The increase revenues. C) They increase foreign competition. D) They remove regulations. Show Answer Correct Answer: B) The increase revenues. 15. Which is the best definition of marginal in economics? A) Variable. B) Additional. C) Borderline. D) Satisfactory. Show Answer Correct Answer: B) Additional. 16. Producers offer more of a good as its price increases and less of it as its price falls, this summarizes 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. 17. Which of the following typically happens as prices for a good or service rises? A) Suppliers leave the market. B) Demand becomes increasingly elastic. C) Consumers seek more of the good or service to consume. D) More suppliers enter the market. Show Answer Correct Answer: D) More suppliers enter the market. 18. If there are no alternative products to satisfy consumers' needs, A) The supply will be large. B) The price will be low. C) Supply and demand are unaffected. D) Consumers will pay more. Show Answer Correct Answer: D) Consumers will pay more. 19. Which of these is the best description of a supply curve? A) It is totally horizontal (flat). B) It is completely vertical (straight up & down). C) It looks like the upslope of a mountain. D) It looks like the downslope of a mountain. Show Answer Correct Answer: C) It looks like the upslope of a mountain. 20. (Supply of Toys?) Workers at a toy factory go on strike as a result of poor conditions and low wages. A) Curve Shifts Left. B) Curve Shifts Right. C) Movement Along the Curve. D) None of above. Show Answer Correct Answer: A) Curve Shifts Left. ← PreviousNext →Related QuizzesMicroeconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 4Supply Quiz 5Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9Supply Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books