Supply

Payment to the government on the production or sale of a good is...

• a tax

• a subsidy

• an input

• a regulation

What effect does resource prices have on the price of a good?

• The good becomes dependent on government regulation

• the good becomes cheaper to produce

• The good becomes more expensive to produce

• It has no effect on the cost of the good

How does new technology affect supply?

• Decreases supply

• Increases supply because it increases cost

• It lowers cost and increases supply

• It has very little effect on production

If a seller expects the price of a good to rise in the future, the seller will...

• place these goods on the market immediately

• increase production of a good

• store these goods until the price goes up

• increase the price of the good now

When any effort by government causes the supply of a good to rise, what happens to the supply curve.

• It shifts to the left

• It shifts to the right

• A point on the curve moves up

• The supply curve is not affected

A government payment that supports a business...

• Excise tax

• Subsidy

• Inputs

• Regulation

Which of these events would indicate a movement along a supply curve for batteries

• A new law requires battery manufacturers to spend more money on environmentally safe batteries

• Workers at a major battery factory go on strike and stop production

• Battery manufacturers raise the price of a package of AA batteries form 3.50 to 3.95

• A new trade agreement enables stores to import foreign batteries

A factory makers pencils. New machines in the factory make it faster to make pencils. What will happen next?

• Costs will drop, but supply will remain the same

• Supply and costs both decrease

• Costs will go down and supply will increase

• At first supply will rise and then decrease

How does an increase in an excise tax on cars affect the supply of cars?

• More cars will be made

• Supply will decrease

• Supply will stay the same

• Supply will increase

As price goes up, the quantity supplied of a good...

• Stays the same

• goes down

• goes up

• at first goes up, then decreases