Macro 5.1

____________ refers to the amount of a product offered for sale at all possible prices in a market.

• Quantity Supplied

• Supply

• Production

Quantity supplied increases when the price ______________.

• decreases

• goes unchanged

• increases

A more than proportional change in total expenditures when there is a change in price is supply ____________.

• elasticity

• unit elasticity

• inelasticity

Movement along the supply curve measures a change in __________ supplied.

• market

• quantity

• quality

A(n) ____________ is a payment to an individual business, or other group to encourage or protect a certain type of economic activity.

• subsidy

• income investment

• production loan

Which of these is NOT a factor in the change in supply.

• cost of resources

• substitutes

• technology

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

Which of these names the way in which producers regard taxes?

• as an investment in technology

• as part of the cost of production

• as an entry in their supply schedule

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

Which of these is true of both an individual supply curve and a market supply curve?

• A change in quantity supplied takes place when a change in demand occurs.

• A change in quantity supplied takes place only when there is a change in price.

• A change in quantity supplied takes place only when the price remain constant