This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 4 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 4 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is one reason governments give farmers subsidies? A) To keep food supplies up. B) To help farmers pay back their personal debts. C) To increase the cost of production. D) To help people forget past shortages. Show Answer Correct Answer: A) To keep food supplies up. 2. What is determined by dividing change in total cost by change in total product? A) Marginal Cost. B) Marginal Product. C) Marginal Utility. D) Variable Costs. Show Answer Correct Answer: A) Marginal Cost. 3. What is the definition for "fast-moving consumer good" ? A) Goods bought by people which involve fast movement. B) Goods that sell very quickly in small amounts. C) Goods that sell very quickly in large amounts. D) Goods that are transported quickly in large amounts. Show Answer Correct Answer: C) Goods that sell very quickly in large amounts. 4. Which of the following best describes supply? A) The amount of a product offered for sale at all possible prices. B) The amount of a product people are willing to buy at all possible prices. C) The amount of a product people are willing to trade for. D) None of above. Show Answer Correct Answer: A) The amount of a product offered for sale at all possible prices. 5. Quantity supplied is ..... A) The amount of a good that sellers are willing and able to sell. B) The amount a supplier is willing buy from another supplier. C) Is the quantity consumers are willing to give up. D) None of the above. Show Answer Correct Answer: A) The amount of a good that sellers are willing and able to sell. 6. What are variable expenses? A) Irregular expenses that change from week to week or month to month. B) The amount of money in your bank account. C) Costs that do not fluctuate from week to week or month to month. D) The amount of cash in your purse/wallet. Show Answer Correct Answer: A) Irregular expenses that change from week to week or month to month. 7. In general, if the price of a good or service goes up, what happens to the supply for that good or service? A) Supply goes up. B) Supply goes down. C) Supply stays the same. D) None of the above. Show Answer Correct Answer: A) Supply goes up. 8. What is elasticity? A) The means by which total revenue is measured. B) A measure in the responsiveness to a change is price. C) The stretchy-ness of a rubber band. D) None of above. Show Answer Correct Answer: B) A measure in the responsiveness to a change is price. 9. Which factor might cause an increase in the supply of a product? A) The introduction of new technology. B) Fewer sellers in the marketplace. C) A decrease in productivity. D) An increase in the cost of raw materials. Show Answer Correct Answer: A) The introduction of new technology. 10. If a new, huge oil reservoir was found in Ohio, this would cause the ..... curve for oil and gas to shift ..... A) Demand right. B) Demand left. C) Supply right. D) Supply left. Show Answer Correct Answer: C) Supply right. 11. A producer will cause a surplus: 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: A) If the price of a good is too high. 12. What provides a concise description of how producers behave? A) Marginal Utility. B) Law of Supply. C) Law of Demand. D) Law of diminishing marginal utility. Show Answer Correct Answer: B) Law of Supply. 13. Which of the following policies would be supported by a supply-side economist? A) Higher taxes on corporate profits. B) Longer duration of unemployment benefits. C) Removal of investment tax credits. D) Lower tax rates on interest earned from savings. Show Answer Correct Answer: D) Lower tax rates on interest earned from savings. 14. The willingness and ability of businesses to sell more when price rises and less when it drops. A) Demand. B) Supply. C) Shifters of Supply. D) Law of Supply. Show Answer Correct Answer: D) Law of Supply. 15. All of the following are examples of variable costs EXCEPT A) Labor. B) Freight. C) Interest payments on bonds. D) Electricity. Show Answer Correct Answer: C) Interest payments on bonds. 16. What can cause the supply curve for a product to shift to the right? A an increase in demand for the product B an increase in government subsidies to producers C an increase in indirect taxes on the product D an increase in the costs of production A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 17. The total quantity that can be brought into the market at a point of time is A) Stock. B) Supply. C) Demand. D) None of the above. Show Answer Correct Answer: A) Stock. 18. A movement upward and to the left along a demand curve is called a(n) A) Increase in demand. B) Decrease in demand. C) Decrease in quantity demanded. D) Increase in quantity demanded. Show Answer Correct Answer: C) Decrease in quantity demanded. 19. With respect to supply, improvements in technology: A) Drive the costs of production down. B) Allows greater production even when other resources remain the same. C) Allows producers to provide more of a product than previously possible. D) All these answers are true! orange+red+blue. Show Answer Correct Answer: D) All these answers are true! orange+red+blue. 20. Stage of production where output increases at a decreasing rate as more units of variable input are added. A) Contributes. B) Diminishing returns. C) Stage I. D) Stage II. Show Answer Correct Answer: B) Diminishing returns. ← PreviousNext →Related QuizzesMicroeconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 5Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9Supply Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books