SupplyDemandQuiz

Which would an economist consider a likely complement for coffee?

• Water

• Tea

• Donuts

• Chicken

Which would an economist consider a likely substitute for coffee?

• Water

• Milk

• Tea

• Chicken

Which of these best describes the influence of high prices on the behavior of producers?

• They are an incentive for producers to produce more.

• ​They are an incentive for producers to buy less. 

• ​They encourage producers to modify their supply schedules.

• They have no significant overall effect on producer behavior

Changes in quantity demanded and changes in price have a(n) _____ relationship.

• Positive

• Indirect

• Neutral

• Inverse

Diminishing marginal utility results from lessened

• Income

• Satisfaction

• Demand

• Elasticity

Which of these do producers of an item hope to achieve when adopting new technologies?

• inelasticity of supply of that item

• a repeal of subsidies for production of that item

• a shift of the supply curve for that item to the right

Which of these would an item’s producer be most likely to do if total revenue on that item began to drop?

• Produce Less of that item

• Produce More of that item

• Raise the price of that item

• Ignore the situation

What are the characteristics of demand?

• ​the desire and ability to buy a product

• the ability and willingness to buy a product

• the willingness and desire to buy a product

• ​the desire, ability, and willingness to buy a product

Which term is generally associated with labor and raw materials? 

• Fixed Costs

• Variable Costs

• Total Costs

• Scarcity

Which stage of production is distinguished by negative marginal returns? 

• Stage 1

• Stage 2

• Stage 3

• Stage 4