This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 6 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 6 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. A shift in the demand curve means that A) There is always an increase in prices. B) There is a change in quantity demanded at every price. C) There is always a decrease in both price and quantity demanded. D) There is always an increase in quantity demanded. Show Answer Correct Answer: B) There is a change in quantity demanded at every price. 2. A new conveyor belt advances the rate at which furniture can be assembled. Why does this change the supply? A) Change in technology. B) Changes in the number of producers. C) Changes in expectations. D) Change in cost of inputs. Show Answer Correct Answer: A) Change in technology. 3. When economists use ceteris paribus, they are looking for what happens to supply and demand when only the ..... changes. A) Price. B) Quantity supplied. C) Quantity demanded. D) Quantity. Show Answer Correct Answer: A) Price. 4. Which of the following is a characteristic of a seller's market? A) Large supply. B) High prices. C) Small demand. D) Low profits. Show Answer Correct Answer: B) High prices. 5. Much of the tea in the U.K. is imported from India. If wages for Indian tea workers rose, thus increasing input costs, how would this effect supply of tea in the U.K.? A) Supply would increase. B) Supply would decrease. C) Supply would stay the same. D) Quantity supplied would decrease. Show Answer Correct Answer: B) Supply would decrease. 6. Total cost is the sum of A) Fixed costs and marginal costs. B) Fixed costs and variable costs. C) Marginal costs and variable costs. D) Fixed, marginal, and variable costs. Show Answer Correct Answer: B) Fixed costs and variable costs. 7. A surplus can be expected whenever: A) Quantity demanded is greater than quantity supplied. B) Quantity supplied is greater than quantity demanded. C) Quantity supplied and quantity demanded are equal to the equilibrium. D) None of above. Show Answer Correct Answer: B) Quantity supplied is greater than quantity demanded. 8. When the price of a product goes down, what happens to producers? A) Existing producers expand. B) Some produce less, and others leave the market. C) Existing firms continue their usual output. D) New firms enter the market. Show Answer Correct Answer: B) Some produce less, and others leave the market. 9. What is the law of supply? A) The lower the price, the larger the quantity produced. B) A smaller the quantity will be produced because the price is higher. C) The lower the price, the smaller the quantity produced. D) Price doesn't affect the manufacturers production of a good. Show Answer Correct Answer: C) The lower the price, the smaller the quantity produced. 10. Tax on the production or sale of a specific good or service A) Income Tax. B) Excise Tax. C) Regressive Tax. D) Progressive Tax. Show Answer Correct Answer: B) Excise Tax. 11. Payment to the government on the production or sale of a good is ..... A) A tax. B) A subsidy. C) An input. D) A regulation. Show Answer Correct Answer: A) A tax. 12. An increase in the number of sellers tends to ..... A) Increase the amount of a product available in a market. B) Shift the supply curve to the left. C) Mean everyone who sells gets really rich quick. D) Make little difference in the availability of a product. Show Answer Correct Answer: A) Increase the amount of a product available in a market. 13. Labor in a factory is an example of which of these? A) Resource cost. B) Technology. C) Investment. D) Market size. Show Answer Correct Answer: A) Resource cost. 14. An increase in taxes will shift the supply curve for steel ..... A) To the right. B) To the left. C) Not at all. D) Will cause demand to decrease. Show Answer Correct Answer: B) To the left. 15. A graph of the information in a supply schedule creates which of the following? A) A demand curve. B) The quantity of goods demanded. C) A supply curve. D) The supply of goods available. Show Answer Correct Answer: C) A supply curve. 16. If a seller expects the price of a good to rise in the future, the seller will ..... A) Place these goods on the market immediately. B) Increase production of a good. C) Store these goods until the price goes up. D) Increase the price of the good now. Show Answer Correct Answer: C) Store these goods until the price goes up. 17. Cost-benefit decisions making that compares the extra benefits to the extra costs of an action is called? A) Marginal revenue. B) Marginal costs. C) Marginal analysis. D) Marginal output. Show Answer Correct Answer: C) Marginal analysis. 18. An "increase in the quantity supplied [QS]" means a: A) Rightward shift of the supply curve. B) Movement down along the supply curve. C) Movement up along the supply curve. D) Leftward shift of the supply curve. Show Answer Correct Answer: C) Movement up along the supply curve. 19. When quantity demanded is more than quantity supplied A) Price ceiling. B) Shortage. C) Equilibrium. D) Surplus. Show Answer Correct Answer: B) Shortage. 20. The supply curve slopes upward because A) Price and quantity are inversely related. B) Consumers prefer lower prices to higher ones. C) Production costs rise as more output is produced. D) Firms make less profit at higher prices. Show Answer Correct Answer: C) Production costs rise as more output is produced. ← PreviousNext →Related QuizzesMicroeconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 5Supply Quiz 7Supply Quiz 8Supply Quiz 9Supply Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books