This quiz works best with JavaScript enabled. Home > Microeconomics > Supply > Supply – Quiz 7 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Supply Quiz 7 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. The main factor that causes a change in supply is ..... A) Price of Related Goods. B) Subsidies. C) Price. D) Taxes. Show Answer Correct Answer: C) Price. 2. If the price of a good is ..... than the equilibrium price, the supply of the good will be greater than the quantity of goods demanded. A) Lower. B) Higher. C) Supply. D) Resources. Show Answer Correct Answer: B) Higher. 3. Increased government regulations will cause which of the following? A) The supply curve will shift to the right (increase). B) The supply curve will shift to the left (decrease). C) The quantity supplied will decrease. D) The quantity supplied will increase. Show Answer Correct Answer: B) The supply curve will shift to the left (decrease). 4. All of the following can cause an increase in supply EXCEPT? A) A decrease in the cost of inputs. B) Fewer sellers in the market place. C) An increase in productivity. D) A change in taxes or subsidies. Show Answer Correct Answer: B) Fewer sellers in the market place. 5. In moving along a supply curve, what is changing? A) Income. B) Taste. C) Price. D) Resource cost. Show Answer Correct Answer: C) Price. 6. The stages of production are based on? A) The way total products change over time. B) The way 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: B) The way marginal product changes as variable inputs are added. 7. Getting back to the basics, what is opportunity cost? A) The price of an opportunity. B) What you give up to get something else. C) Maximizing efficiency at a price. D) The circle of life. Show Answer Correct Answer: B) What you give up to get something else. 8. The Law of Supply states that? A) The quantity supplied varies inversely with its price. B) The quantity supplied varies irregularly with its price. C) The quantity demanded varies inversely with its price. D) The quantity supplied varies directly with its price. Show Answer Correct Answer: D) The quantity supplied varies directly with its price. 9. The amount of goods and services that a person can produce in a given time is called A) Labor input. B) Labor intensive. C) Labor output. D) Labor productivity. Show Answer Correct Answer: D) Labor productivity. 10. Salazar's Sweets sells popsicles; because it is so hot (in October!), more people buy these popscicles. Salazar's now sells their sweets at a higher price. A) This is supply and demand. B) This is the law of demand. C) This is the law of supply. D) This is crazy. Show Answer Correct Answer: C) This is the law of supply. 11. Which of these do the producers of an item hope to achieve when adopting new technology? A) A shift of the supply curve for that item to the left. B) Repeal of the subsidy for that item. C) Inelasticity of supply of that item. D) A shift of the supply curve for that item to the right. Show Answer Correct Answer: D) A shift of the supply curve for that item to the right. 12. A decrease in quantity demanded A) Results in a movement downward and to the right along a demand curve. B) Results in a movement upward and to the left along a demand curve. C) Shifts the demand curve to the left. D) Shifts the demand curve to the right. Show Answer Correct Answer: B) Results in a movement upward and to the left along a demand curve. 13. Measure of the way in which quantity supplied responds to a change in price A) Supply curve. B) Supply elasticity. C) Supply. D) Subsidy. Show Answer Correct Answer: B) Supply elasticity. 14. The increasing age of the American population is an example of how A) Changing demographics can cause demand shifts. B) Demand does not always change when prices change. C) The law of ceteris paribus works. D) Lack of substitutes can blunt demand shifts. Show Answer Correct Answer: A) Changing demographics can cause demand shifts. 15. The central idea of supply-side economics is that certain types of tax cuts will increase: A) Money supply. B) Imports. C) Aggregate Demand. D) Aggregate Supply. Show Answer Correct Answer: D) Aggregate Supply. 16. A change in supply, caused by one of the determinants of supply, causes: A) The entire supply curve to shift to the right or left. B) No changes to the supply curve. C) Movement along the supply curve. D) None of the above. Show Answer Correct Answer: A) The entire supply curve to shift to the right or left. 17. When any effort by government causes the supply of a good to rise, what happens to the supply curve. A) It shifts to the left. B) It shifts to the right. C) A point on the curve moves up. D) The supply curve is not affected. Show Answer Correct Answer: B) It shifts to the right. 18. Change in the amount offered for sale in response to a price change; movement along the supply curve. A) Change in quantity supplied. B) Change in quantity demanded. C) Change in supply. D) Change in supply curve. Show Answer Correct Answer: A) Change in quantity supplied. 19. If determinants of supply lead to an increased level of production (Increase in Supply), the supply curve will shift A) To the Left. B) Stay constant. C) To the Right. D) Up. Show Answer Correct Answer: C) To the Right. 20. An increase in price all other things unchanged leads to? A. A shift in supply outwardsB. A shift in supply inwardsC. A contraction of supplyD. An extension of supply A) A. B) B. C) C. D) D. Show Answer Correct Answer: D) D. ← PreviousNext →Related QuizzesMicroeconomics QuizzesSupply Quiz 1Supply Quiz 2Supply Quiz 3Supply Quiz 4Supply Quiz 5Supply Quiz 6Supply Quiz 8Supply Quiz 9Supply Quiz 10 🏠 Back to Homepage 📘 Download PDF Books 📕 Premium PDF Books