WorksheetsCh. 5 Economics - Supply
Total questions: 41
Worksheet time: 24mins
Name
Class
Date
1.
The Law of Supply states that?
a)
The quantity supplied varies inversely with its price.
b)
The quantity supplied varies irregularly with its price.
c)
The quantity demanded varies inversely with its price.
d)
The quantity supplied varies directly with its price.
2.
All of the following can cause an increase in supply EXCEPT?
a)
a decrease in the cost of inputs.
b)
fewer sellers in the market place.
c)
an increase in productivity.
d)
a change in taxes or subsidies.
3.
Which product is likely to have the most elastic supply curve?
a)
ice cream cones
b)
automobiles
c)
ships
d)
dishwashing machines
4.
The supply curve is?
a)
downward sloping
b)
level
c)
upward sloping
d)
irregular
5.
Increased government regulations can cause the supply curve to?
a)
shift to the left
b)
shift to the right
c)
increase
d)
decrease
6.
All of the following are stages of production EXCEPT?
a)
increasing returns
b)
diminishing returns
c)
equaling returns
d)
negative returns
7.
The period of production that allows producers to change only the amount of the variable input called labor is?
a)
the long run
b)
the short run
c)
the production function
d)
a stage of production
8.
a production function shows?
a)
changes in output in response to changes in input
b)
changes in input that result from changes in output.
c)
the optimum level of production
d)
the optimum level of the four factors of production
9.
In what order do the three stages of production occur?
a)
negative returns, diminishing returns, increasing returns.
b)
diminishing returns, increasing returns, negative returns.
c)
increasing returns, diminishing returns, negative returns.
d)
increasing returns. negative returns, diminishing returns.
10.
The stages of production are based on?
a)
The way total products change over time
b)
The way marginal product changes as variable inputs are added
c)
the way inputs change in response to business decisions
d)
the way output changes independent of input.
11.
All of the following are examples of variable costs EXCEPT
a)
Labor
b)
Freight
c)
Interest payments on bonds
d)
Electricity
12.
Cost-benefit decisions making that compares the extra benefits to the extra costs of an action is called?
a)
marginal revenue
b)
marginal costs
c)
marginal analysis
d)
marginal output
13.
The total cost of production is determined by?
a)
adding fixed and variable costs
b)
adding marginal product changes as variable inputs are added.
c)
the way inputs change in response to business decisions.
d)
the way output changes independent of input.
14.
If a business's fixed costs are large relative to its variable costs, it is likely to
a)
be more profitable than a firm whose fixed costs are small relative to variable costs.
b)
produce in Stage 3 of the production function.
c)
produce durable goods rather than services.
d)
operate longer hours than a firm whose fixed costs are small relative to variable costs.
15.
Profit is maximized when
a)
marginal cost is less than marginal revenue.
b)
marginal cost is equal to marginal revenue.
c)
marginal cost is greater than marginal revenue.
d)
marginal cost is growing at the same rate as marginal revenue.
16.
When employees are getting in each others way, the firm is operating
a)
in stage 1 of the production.
b)
in stage 2 of the production.
c)
in stage 3 of the production.
d)
as much as it possibly can.
17.
Total cost is the sum of the
a)
fixed costs overhead.
b)
all variable costs.
c)
fixed and variable costs.
d)
fixed and marginal costs.
18.
Profits will be maximized when marginal revenue
a)
is double marginal cost.
b)
equals marginal cost
c)
is one-half marginal cost
d)
exceeds marginal cost.
19.
If a business has relatively low variable costs (like a one man gas station), how should they operate
a)
Should operate only during the day to save on electricity.
b)
Should be open until midnight.
c)
Should be open 9-5 because of variable cost.
d)
Should be open 24 hours a day.
20.
Which of the following is an advantage of an online business?
a)
Low variable costs.
b)
Low fixed costs.
c)
Very little labor needed.
d)
All of the above.
21.
Amount that producers bring to the market at any given price
a)
supply
b)
quantity supplied
c)
supply curve
d)
supply elasticity
22.
Measure of the way in which quantity supplied responds to a change in price
a)
supply curve
b)
supply elasticity
c)
supply
d)
subsidy
23.
A graph showing the various quantities supplied at each and every price that might prevail in the market
a)
supply curve
b)
subsidy
c)
supply
d)
supply elasticity
24.
Measure of the way in which quantity supplied responds to a change in price.
a)
supply
b)
supply elasticity
c)
quantity supplied
d)
subsidy
25.
A government payment to an individual, business, or other group to encourage or protect a certain type of economic activity.
a)
subsidy
b)
supply curve
c)
supply
d)
quantity supplied
26.
How many cup holders are producers willing to supply at a price of $2.50?
a)
3,000
b)
4,000
c)
5,000
d)
7,000
27.
How Many cup holders are producers willing to supply at a price of $3.00?
a)
3,000
b)
4,000
c)
5,000
d)
7,000
28.
How many cup holders are producers willing to supply at a price of $6.00?
a)
4,000
b)
5,000
c)
7,000
d)
8,000
29.
How many workers should be hired?
a)
5
b)
8
c)
9
d)
10
30.
When does stage 3 begin?
a)
8 workers
b)
11 workers
c)
10 workers
d)
12 workers
31.
Which of the following is not a fixed cost?
a)
Executive salaries
b)
Labor
c)
Building Rent
d)
Taxes
32.
If the total product of worker number 5 had been 95, what would the marginal product have been?
a)
32
b)
33
c)
34
d)
35
33.
If the total product of worker number 5 had been 95, what would the marginal cost have been?
a)
$3.21
b)
$3.39
c)
$3.50
d)
$3.66
34.
How do you find total profit?
a)
Adding fixed and variable costs
b)
subtracting fixed and variable costs
c)
subtracting total costs from total revenue
d)
Multiplying marginal revenue by ,marginal product
35.
If the total product of worker number 5 had been 95, what would the variable cost have been?
a)
360
b)
450
c)
500
d)
540
36.
Stage two represents what?
a)
increasing marginal return
b)
Diminishing marginal return
c)
Negative marginal return
d)
Equaling marginal return
37.
Which of the following is not a variable cost?
a)
Electricity bills
b)
labor
c)
Shipping
d)
Taxes
38.
A producer thinks the price of the product is going to increase, so he withholds supply?
a)
shifts right
b)
shifts left
c)
movement up on the supply curve
d)
movemnt down the supply curve
39.
A company invests in new technology, but the new machines are constantly breaking down?
a)
shifts right
b)
shifts left
c)
movement up the supply curve
d)
movement down the supply curve
40.
A company pays for their employees to receive extra training?
a)
shifts right
b)
shifts left
c)
movement up the supply curve
d)
movement down the supply curve
41.
The government puts regulations on the auto industry forcing them to put new protective technologies (such as new types of airbags) in every car produced?
a)
shifts right
b)
shifts left
c)
movement up supply curve
d)
movement down supply curve
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