Microeconomics 2

According to the law of supply, Price and quantity have which relationship?

• Negative

• Inverse

• Positive

• Neutral

According to the law of supply, the points on the curve are known as

• Supply

• Demand

• Quantity Demanded

• Quantity Supplied

According to the law of supply, if the price of a good increases from $15 to $30, what would happen to the quantity supplied of that item?

• The quantity supplied would increase

• The quantity demanded would increase

• The supply would decrease

• The demand would decrease

What causes a business to make a change in the quantity supplied of an item?

• changes in quanitity

• changes in supply

• changes in demand

• changes in price

Which of the following would cause an outward shift (Increase in Supply) in the supply curve

• Increase in the number of sellers

• Better Technology

• Greater regulations

• More expensive resources

Which of the following would cause an inward shift (Decrease in Supply) of the supply curve

• Increased number of sellers

• Deregulation

• Hiring workers with less education

• Expectations that prices will increase

According to the chart, what do household exchange in the Product market for finished products?

• Consumption Expenditures

• Cost

• Goods and services

• Productive Resources

According to the chart above, what do businesses receive from the factor market?

• Goods and Services

• Finished Goods

• Income

• Factors of Production

According to the chart, what do businesses do with the productive resources they purchase?

• make finished goods and services and sell them in the product market

• make finished goods and services and sell them in the factor market

• make productive resources and sell them in the product market

• use them to gain a tax credit with the government

According to the chart, who makes income?

• Businesses

• Factor Markets

• Product Markets

• Households