Economics Chapter 5 Supply Test

Supply is from the viewpoint of the

• Consumer
• Worker
• Bank
• Seller

Advances in technology usually

• lower production costs and increase supply
• increase production costs and decrease supply
• reduce quality of the supply
• result in a the government giving subsidies

Which of the following is an example of lower production costs brought about by the use of technology?

• The delivery costs of gasoline to the consumer by diesel trucks
• The use of emails to replace the postal service
• The making of breads and pastries and local shops rather than large bakeries
• The importing of fresh vegetables from south america rather than using canned vegetables

What do sellers do if they expect the price of goods they have for sale to increase dramatically In the near future

• Sell the goods now
• Sell the goods now but try to get the higher price for them
• Store the goods until the price rises
• Store the goods indefinitely regardless of when the price rises

Which of the following is the best example of the law of supply?

• A sandwich shop increases the number of sandwiches they supply every day when the price is increased
• A food producer increase the number of acres of wheat he grows to supply a milling company
• A catering company buys a new dishwasher to make their work easier
• A milling company builds a new factory to process flour to sell to other countries

What factor has the greatest influence on elasticity and in an elasticity of supply?

• Profit
• Time
• Labor
• Financing

The one question to determine the elasticity of supply is?

• Can prices be changed quickly?
• Can new customers be found quickly?
• Can production be increased/decreased quickly
• Can improvements to the product be made quickly

Which is an example of a good with inelastic supply

• beanbags
• toothbrushes
• bananas
• hats

When the selling price of a product is equal to the cost to produce the product, you have the...

• Break even point
• Equilibrium
• Profit Maximization Point
• Selling Point

When the selling price of the good goes up, what is the relationship to the quantity supplied

• The cost of production goes down
• The profit made on item goes down
• It becomes practical to produce more goods
• There is no relationship between the two