Ch 5 Supply

The stages of production measure the effects of workforce size on marginal product.

• True

• False

​The stages of production are distinguished by

their marginal products.

• True

• False

Changes to variable and fixed input are easiest during a long-run production period.

• True

• False

The third stage of production is distinguished by an increase in output.

• True

• False

​A producer’s “marginal product” and “total product” are generally the same amount

• True

• False

Which of these is the best description of a normal supply curve?

• ​Its slope is

  completely horizontal.

• ​Its slope goes up

  when the diagram is read from right to left.

• ​Its slope goes up

  when the diagram is read from left to right.

  
  

• ​Its slope is mostly

  horizontal, with occasional vertical fluctuations.

​Factors that can cause a change in supply include

• ​technology and

  government regulations.

• increases in the

  number of sellers and market expectations.

• increased or decreased

  ​government subsidies.

• all of the above.

Because it takes huge amounts of capital and technology to increase nuclear power output, the supply curve for nuclear power is​

• ​inelastic in the

  short run.

• elastic in the short run.

• inelastic in the long run.

• unit elastic in the long run

Which of these industries has the least elastic supply curve?

 

• ​the toy industry

• ​the nuclear industry  

• ​the automobile industry  

• ​the entertainment industry

Which of these is an example of a variable cost?

•   ​raw materials

•   ​interest fees on bonds  

• ​state and local property taxes

•   ​payments on leased properties