Supply Quiz Practice

What does the term "supply" refer to in economics?

• The amount of money consumers are willing to spend on goods and services.

• The various quantities of a good or service that producers are willing and able to sell at all possible market prices.

• The total number of consumers in a market.

• The price at which goods are sold in the market.

What is a supply schedule?

• A graph showing the relationship between price and demand.

• A table that shows the quantities producers are willing to supply at various prices.

• A list of all products available in the market.

• A timetable for when goods will be delivered.

Which of the following best describes the supply curve?

• A table showing the prices of goods.

• A line that connects the points showing quantities supplied at various prices on a graph.

• A list of all producers in the market.

• A curve that always slopes downward.

According to the law of supply, what will producers normally do at higher prices?

• Offer less for sale.

• Offer more for sale.

• Keep the same amount for sale.

• Stop producing goods.

How does the relationship between variables in supply differ from that in demand?

• Supply has an inverse relationship, while demand has a direct relationship.

• Both supply and demand have inverse relationships.

• Supply has a direct relationship, while demand has an inverse relationship.

• Both supply and demand have direct relationships.

Which of the following best defines 'Revenue'?

• The total money a business takes in

• The money left after costs are covered

• The number of products sold

• The resources used in production

What does 'Profit' mean?

• The money a business has left over after it covers its costs

• The total money a business takes in

• The amount spent on resources

• The number of employees hired

Why do price and supply move together?

• Because businesses want to maximize outputs and sell at the highest price to earn profit

• Because consumers demand more products

• Because government regulations require it

• Because resources are unlimited

What causes a change in the quantity supplied according to the learning material?

• A change in price

• A change in technology

• A change in consumer preferences

• A change in government policy

According to the supply curve shown, what happens to the quantity supplied if the price of widgets falls from $3 to $2?

• The quantity supplied increases to 8 widgets

• The quantity supplied falls to 4 widgets

• The quantity supplied remains the same

• The quantity supplied falls to 2 widgets