Ch. 5 Economics - Supply

The Law of Supply states that?

• The quantity supplied varies inversely with its price. 
• The quantity supplied varies irregularly with its price.
• The quantity demanded varies inversely with its price. 
• The quantity supplied varies directly with its price. 

All of the following can cause an increase in supply EXCEPT?

• a decrease in the cost of inputs.
• fewer sellers in the market place.
• an increase in productivity. 
• a change in taxes or subsidies. 

Which product is likely to have the most elastic supply curve?

• ice cream cones
• automobiles
• ships
• dishwashing machines 

The supply curve is?

• downward sloping 
• level
• upward sloping
• irregular 

Increased government regulations can cause the supply curve to?

• shift to the left
• shift to the right
• increase 
• decrease

All of the following are stages of production EXCEPT?

• increasing returns
• diminishing returns
• equaling returns 
• negative returns

The period of production that allows producers to change only the amount of the variable input called labor is?

• the long run
• the short run
• the production function
• a stage of production 

a production function shows?

• changes in output in response to changes in input
• changes in input that result from changes in output.
• the optimum level of production
• the optimum level of the four factors of production

In what order do the three stages of production occur?

• negative returns, diminishing returns, increasing returns.
• diminishing returns, increasing returns, negative returns.
• increasing returns, diminishing returns, negative returns.
• increasing returns. negative returns, diminishing returns. 

The stages of production are based on?

• The way total products change over time
• The way marginal product changes as variable inputs are added
• the way inputs change in response to business decisions
• the way output changes independent of input.