This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 5 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 5 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A local neighborhood has many houses for sale at a low price, but demand for houses is low. What kind of market most likely exists in this neighborhood? A) Seller's. B) Inelastic. C) Discretionary. D) Buyer's. Show Answer Correct Answer: D) Buyer's. 2. When the demand curve shifts to the left, this suggests demand has A) Increased. B) Decreased. C) Quantity demanded has increased. D) Quantity demanded has decreased. Show Answer Correct Answer: B) Decreased. 3. If the demand for coffee decreases as income decreases, coffee is?A. an inferior goodB. a normal goodC. a complementary goodD. a substitute good A) A. B) B. C) C. D) D. Show Answer Correct Answer: B) B. 4. As opposed to movement along the supply curve, a change (shift) in the entire supply curve is a result of ..... A) An increase in price. B) A change in price and availability. C) A decrease in price. D) A change in something other than price. Show Answer Correct Answer: D) A change in something other than price. 5. This factor covers how producers look into future markets and makes the decision of when to supply their product A) Producer Expectations. B) Consumer Expectations. C) Consumer Income. D) Price of Related Goods. Show Answer Correct Answer: A) Producer Expectations. 6. Congress passes a law which pays farmers to produce less crops starting today. What happens to the supply of crops 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. 7. According to the Law of Supply, as price increases, quantity supplied ..... ? A) Increases. B) Decreases. C) No change. D) None of above. Show Answer Correct Answer: A) Increases. 8. Which of the following is NOT a factor that shirts demand? A) Tastes and preferences. B) Price of related goods. C) Cost of production. D) Number of buyers. Show Answer Correct Answer: C) Cost of production. 9. A price ceiling is when A) The government sets a maximum price for a good. B) The government sets a minimum price of a good. C) The government allows the market to decide the price for a good. D) The government sets an equlibrium price. Show Answer Correct Answer: A) The government sets a maximum price for a good. 10. What effect do taxes on production usually have on the supply curve? A) Decreases supply, supply curve shifts left. B) Increases supply, supply curve shifts left. C) Decreases supply, supply curve shifts right. D) Increases supply, supply curve shifts right. Show Answer Correct Answer: A) Decreases supply, supply curve shifts left. 11. Production cost that varies as output changes; labor, energy, raw materials A) Variable cost. B) Marginal cost. C) Total cost. D) Fixed costs. Show Answer Correct Answer: A) Variable cost. 12. What is the equation for Total Revenue A) Price times Quantity Demanded. B) Price divided by quantity demanded. C) Quantity demanded divided by price. D) Quantity supplied times price. Show Answer Correct Answer: A) Price times Quantity Demanded. 13. Besides price, supply can shift due to factors that are known as ..... A) Competition. B) Determinants. C) Demand. D) Price of Resources. Show Answer Correct Answer: B) Determinants. 14. Which of the following best describes inelastic demand? A) Fluctuating. B) Not affected by price change. C) Variable. D) Limited to luxury goods. Show Answer Correct Answer: B) Not affected by price change. 15. A table showing the quantities produced or offered for sale at each and every possible price in the market at a given point in time. A) Supply schedule. B) Demand schedule. C) Supply curve. D) Market supply curve. Show Answer Correct Answer: A) Supply schedule. 16. Which of the following policies is a component of supply-side fiscal policy? A) An increase in the money supply. B) Higher taxes on research and development. C) Lower taxes on income. D) An increase in government spending. Show Answer Correct Answer: C) Lower taxes on income. 17. What will happen if the government decided to subsidize the production of bobble-head dolls? A) The demand for bobble-heads will decrease. B) The supply curve will shift to the right. C) The supply curve will shift to the left. D) The demand for bobble-heads will equal the supply. Show Answer Correct Answer: B) The supply curve will shift to the right. 18. If a business has relatively low variable costs (like a one man gas station), how should they operate A) Should operate only during the day to save on electricity. B) Should be open until midnight. C) Should be open 9-5 because of variable cost. D) Should be open 24 hours a day. Show Answer Correct Answer: D) Should be open 24 hours a day. 19. Levi's (jean company) will pay its workers $ 1.50 more per hour. What happens to the market for jeans? A) Demand Increase. B) Supply Increase. C) Demand Decrease. D) Supply Decrease. Show Answer Correct Answer: D) Supply Decrease. 20. According to the Law of Supply, which of these would happen to an item as its price rose? A) Producers would make less of it. B) Producers would make more of it. C) Producers would increase the price even more. D) Producers would lower the price on similar items. Show Answer Correct Answer: B) Producers would make more of it. ← PreviousNext →Related QuizzesMicroeconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 6Supply Quiz 7Supply Quiz 8Supply Quiz 9Supply Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books