Changes in Supply

Which of the following best describes supply?

• The amount of a product offered for sale at all possible prices.
• The amount of a product people are willing to buy at all possible prices.
• The amount of a product people are willing to trade for.

Which of the following does not cause a change in supply?

• Government regulations.

• New Technology.

• Change in price.

• Changes in productivity.

In which direction does the supply curve shift when input costs increase?

• up

• down

• left

• right

Why do governments impose excise taxes on some goods?

• to discourage consumption of those goods

• to ensure that the wealthy pay a share of taxes

• to protect newly forming industries from foreign competition

• to provide for the safety of the food supply

How do subsidies help producers?

• They increase costs

• The increase revenues

• They increase foreign competition

• They remove regulations

Which of the following government actions would increase the supply of cars in the United States?

• The establishment of an excise tax on cars

• An end to subsidies to automakers

• The removal of car mileage regulations

• The establishment of quotas on imported cars