MICROECONOMICS

Consider the words "supply" and "production." Which of the following statements is true?

"Supply" refers to what is provided to the market, while "production" refers to the quantity produced.

tax on producers

-Increases the cost of producing.

if adhesive technology improves, the:

-Supply of wooden toys will increase.

Which of the following likely affects the supply curve?

Taxes and subsidies placed on producers.

The supply curve will shift to the right or left when:

a non-price determinant of supply changes.

Market participants who are willing and able to sell goods, services, or resources are

sellers

Taxes and subsidies that are placed on businesses are likely to:

shift the supply curve.

When we say in economics that there is an increase in supply, we mean that the supply curve:

shifts to the right.

A payment made by the government that does not necessarily require an exchange of economic activity in return is called a:

subsidy.

A change in taxes and subsidies on producers alters market

supply

suppose that tomato producers expect prices to fall in the future. This will likely cause current:

supply to increase.

Seller expectations are

the anticipated future outcomes that sellers associate with the production of a good, service, or resource.

When a nonprice determinant of supply changes:

the entire supply relationship changes.

The government decides to implement a tax on turnips. What will be the effect on the turnip market?

A change in supply

An increase in the cost of a resource will have what effect on the market?

A decrease in supply

refers to the quantity of output firms produce.

Production

Producers expect the price of lumber to increase next month. How will producers respond today?

Supply of lumber will decrease at every price.

Firms expecting a cold winter will anticipate an increased demand for scarves resulting in an increased future price. How will the market adjust today?

Supply will decrease at every possible price.

the supply of recreational river sports will fall.

an increase in the supply of skis now.

There is a technological improvement in the process for harvesting oranges. As a result, the cost of producing oranges will:

decrease and supply will increase.

If both consumers and producers have a change in expectations about future prices,:

demand and supply will shift.

At a firm's level, higher expected prices can increase the current while decreasing the current to the market.

production supply

If the production of a good incurs at a lower cost,:

the opportunity cost of producing other goods (in terms of the amount of this good that could have been produced) has increased. the opportunity cost (in terms of other goods that could have been produced) has decreased.

If the production of a good involves a lower cost,:

the opportunity cost of producing other goods has increased.

In September, heating-oil producers anticipate a brutally cold winter and higher prices of heating oil by the end of November. We can expect that:

the supply of heating oil will fall now.

Suppose that days of rain increase water levels in a river and wash away the docks, canoes, and kayaks of the riverside rental businesses. We can conclude that:

the supply of recreational river sports will fall.

The size of the producer tax will influence the size of the shift in

supply

When you plot that data points from the supply schedule, you create the:

supply curve.

The supply curve displays the:

supply of the good in a graph showing the different prices and their corresponding quantity supplied.

The _____ displays the relationship between quantity and price supplied supply in a table.

supply schedule

The size of the supply shift is determined by the:

-Size of the producer tax.

If wood prices fall, the:

-Supply of wooden toys will increase.

A Tax is a payment made to:

-The government that is the result of economic activity.

A change in the price of a good will affect

-The quantity of that good supplied to the market.

When the supply curve shifts to the right

-more of a good, service, or resource is produced at all prices. -it is called an increase in supply.

A new technology increases the production of widgets by 25% at all possible prices. Which of the following statements offers the best description of the location of the new supply curve, relative to the original curve?

A shift to the right with a greater increase occurring at higher price levels.

Which of the following events would increase the cost of production?

A tax is placed on the market.

Which of the following events will increase supply?

A technological improvement that reduces the cost of production

Which of the following is a possible outcome if a nonprice determinant of supply changes?

An increase in supply at all possible prices A decrease in supply at all possible prices

Which of the following are examples of resources?

An oven used to bake bread at a bakery. Workers hired to pick grapes at a vineyard.

Which of the following scenarios was used to show the effect of an increase in technology on a market?

Manufacturers produce a new tractor that lets farmers prepare the soil for wheat faster.

All the following can shift the supply curve except:

a change in income.

The quantity of a good supplied to the market is affected by

a change in the price of a good.

In economics, a downward-sloping or upward-straight line is often called:

a curve.

When less output is being produced at every price, we say there is:

a decrease in supply.

The diagram shows three supply curves for apples. Which of the following would cause the supply of apples to shift from S1 to S3?

a decrease in the number of apple farmers

The figure above shows three supply curves for wheat. Which of the following would cause the quantity of wheat supplied to decrease from point b to point a?

a decrease in the price of wheat

Suppose a manufacturer produces soccer balls and footballs. If the cost of producing a soccer ball decreases, the opportunity cost of producing:

a football will increase.

Suppose that a more efficient way to produce a good is discovered, thus lowering production costs for the good. This will cause

a rightward shift of the supply curve.

The taxes and subsidies that are under consideration in analyzing supply apply to

businesses

If a fitness center owner decides to hire additional employees but does not change the size of the fitness center or the amount of capital available to its employees to perform their tasks, the fitness center will likely experience:

diminishing marginal productivity.

The price of a good and the quantity supplied are:

directly related.

A change in supply:

does not have to be a parallel shift.

According to the law of diminishing marginal productivity, the marginal productivity of additional variable resources will eventually fall, all else held constant, if at least one input is_______

fixed

The law of supply tells us that:

higher prices of goods result in higher quantities of goods being supplied

Increasing the quantity of wheat supplied requires that farmers incur increasing costs for water, fertilizer, and other resources, thus _________(increasing/decreasing) the opportunity cost of growing wheat.

increasing

Taxes are generally collected from:

individuals and firms

When the supply curve shifts left

it is called a decrease in supply. lower quantities of a good, service, or resource are produced at all prices.

When the supply curve shifts right

it is called an increase in supply. more of a good, service, or resource is produced at all prices.

Taxes charged on and subsidies provided to consumers are:

likely to shift the demand curve.

The sum of individual supply curves added together reflect the _____________supply curve.

market

When analyzing demand and supply curves for an individual good, the vertical axis measures the:

price of the good and the horizontal measures quantity.

A movement along the supply curve is the result of a change in _______ , while a shift in the supply curve is the result of a change in

price; non-price determinants

When we consider the effects of taxes and subsidies on the market for goods, services, and resources, we evaluate how taxes and subsidies affect:

producers.

When we talk about the supply of a good - we are referring to the:

quantity of the good producers are willing and able to supply at a variety of different prices over a fixed time period - all else held constant.

Any change in the availability and quality of resources and technology will likely affect the:

quantity producers are willing and able to supply to the market at every price.

The inputs used to produce goods and services are also called

resources

When producers expect lower future prices, current supply shifts to the

right

A tabular representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the supply

schedule

The supply _________displays the supply in a table showing the different prices and their corresponding quantities supplied.

schedule

The size of the producer subsidy will influence the:

size of the shift in supply.

A tabular representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the:

supply schedule.

The law that states that as the price of a good, service, or resource rises, the quantity supplied will increase, all else held constant, is the law of

supply.

The supply schedule displays the supply in a(n) ______form, showing the different prices and their corresponding quantities supplied.

table

A payment made to the government that is the result of economic activity is called a

tax

_______and subsidies alter the costs or benefits of producing goods and services.

taxes

The supply curve is a representation of the relationship between:

the price of the product and the quantity supplied.

A graphical representation of the relationship between the price of a good, service, or resource and the quantities producers are willing and able to supply is known as the supply

curve

In economics, a downward-sloping or upward-straight line is often called:

curve

On the supply side of the market, when the price of a good increases, the quantity supplied of the good

Increases

Firms will be willing and able to produce more output only when prices rise, because the________ cost of production is rising.

OPPORTUNITY

Why is the supply curve upward-sloping?

Producing significantly more of a product involves increased costs so the price of the good must rise for sellers to be willing and able to increase the quantity of the good they supply to the market.

How is a supply curve plotted?

Quantity supplied is on the horizontal axis and price of the good is on the vertical axis.

Which of the following reflects a way of expressing information about the amount of coffee cups producers are willing and able to produce?

Supply curve, Supply schedule

The knowledge, inventions, and innovations that can potentially increase resource productivity are known as

Technology

Which principle states that as the price of a good increases the quantity supplied will increase?

The law of supply

Which of the following expresses the information found in the supply schedule?

The supply curve

A technological improvement reduces the cost of harvesting almonds. How will this event affect the market for almonds?

The supply of almonds increases

Resources (such as land) and technology (such as the ability to draw water from a well):

contribute to how a good or service is produced for the market.

Subsidies most often take the form of payments to businesses by governments. (True or False)

True

A shift in the supply curve at every price is the result of a change in:

a nonprice determinant of supply.

If consumers believe that prices will decrease in the future,:

demand decreases today.

Market supply is the _____ summation of the quantities supplied by individuals - firms - states - or even nations at each price over a fixed time period.

horizontal

According to the principle of diminishing marginal productivity:

if at least one input of production is fixed, the marginal productivity of additional variable resources will eventually fall, all else held constant.

An increase in the quantity of a good - service - or resource supplied at every price is:

increase in supply

According to the the law of supply, if the price of apple juice rises, producers of apple juice will be willing and able to:

increase the quantity of apple juice they supply to the market.

According to the law of supply, as price ________, quantity supplied ________.

increases; increases

The horizontal summation of the quantities supplied by individuals - firms - states - or even nations at each price over a fixed time period represents the:

market supply

The overall - or total - supply of a good - service - or resource is the:

market supply.

The sum of individual supply curves added together reflect the:

market supply.

An "increase in the quantity supplied" suggests a

movement up and to the right along the supply curve.

The supply curve focuses entirely on the changes in the________ of the product and holds everything else constant.

non-price determinants.

A change in supply

occurs when a nonprice determinant of supply changes. has the effect of shifting the entire supply curve to the right or left.

Firms will be willing and able to produce more output only when prices rise because the:

opportunity cost of production is increasing.

All else equal, a change in the_______ of a good, service, or resource changes the quantity supplied of the good, service, or resource.

price

An increase in supply is a:

shift right

To simplify analysis in economics, supply curves are often drawn as:

sloping lines.

Taxes and ___________ alter the costs or benefits of producing goods and services.

subsidies

A(n) __________to producers lowers the cost of producing.

subsidy

All else equal, a change in the price of a good, service, or resource changes the quantity _______of the good, service, or resource.

supplied

The three different ways of expressing information about the supply of a good - service - or resource are:

supply - supply curve - and the supply schedule.

When the number of sellers decreases,:

supply decreases.

When the number of sellers increases,

supply increases

Suppose once students return to campus after the summer they discover three new pizza places. Based on this information, we can conclude that the:

supply of pizzas will increase.

When a farmer continues to add pounds of fertilizer to the fixed farm area that she has, eventually:

the additional output for each pound of fertilizer will fall.

When the price of smart phones increases:

the quantity of smart phones supplied will increase.

A change in the price of a good will affect:

the quantity of that good supplied to the market.

There is an increase in the supply of pumpkins. This event can be seen graphically as:

the supply curve shifts to the right.

In a market, when the price or availability of resources used in the production of a certain good changes

the supply curve shifts.

A decrease in the supply of cellphones implies

there is a decrease in the quantity of cellphones supplied at each price.