Supply {Economics}

Which of the following is NOT a fixed cost? a. building construction costs b. rent c. electricity d. property taxes

c. electricity

The change in output from adding one more worker is called a. marginal product of labor b. increasing marginal returns c. diminishing marginal returns d. negative marginal returns

a. the marginal product of labor

A market supply curve shows a. the quantity supplied by producers at different prices b. supply for any set of conditions c. how prices affect the cost of raw materials d. how the supply of goods is kept in balances

a. the quantity supplied by producers at different prices

The key factor that determines whether the supply of a good will be elastic or inelastic is a. time b. consumption c. price d. output level

a. time

If the market price for a beanbag is 24, and the marginal cost for the beanbag is $7, the marginal revenue from the beanbag would be a. $17 b. $24 c. $7 d. $31

b. $24

Which of the following leads to an increase in supply? a. an increase in the cost of raw materials b. a decrease in the cost of raw materials c. diminishing marginal returns d. a change in the law of supply

b. a decrease in the cost of raw materials

A subsidy is a. a tax on the production or sale of a good b. a government payment to support a business or market c. a form of government regulation d. illustrated by the market supply curve

b. a government payment to support a business or market

A producer's profits are maximized when marginal costs.. a. are equal to fixed costs minus variable costs b. are less than marginal revenue c. result in decreasing marginal returns d. are equal to marginal revenue

b. are less than marginal revenue

Advances in technology usually a. lower costs and increase supply at all price levels b. increase cost and increase supply at lower price levels c. lower costs and increase supply at higher levels d. increase cost and decrease supply at all price levels

b. increase cost and increase supply at lower price levels

Which of the following is an example of a variable cost? a. rent b. machinery repair c. equipment d. raw materials

b. machinery repair

According to the law of supply a. the lower the price, the greater the quantity consumed b. the higher the price. the greater the quantity produced c. if the price of a good rises, some firms will produce less. d. if the price of a good falls, new firms may enter the market

b. the higher the price, the greater the quantity produced

___________ is a measure of the way suppliers respond to a change in price. a. The marginal product of labor b. Ceteris caribus c. Elastic of Supply d. The market supply curve

c. Elasticity of supply

The supply curve a. always rises from left to right b. is always a horizontal line c. always rises from right to left d. is always in a vertical line

c. always rises from the right to the left

Which of the folllowing businesses has elastic supply a. newspaper publishing b . apple farming c. hair cutting d. elasticity production

c. hair cutting

The law of supply describes the relationship between a. price and demand b. demand and supply c. price and quantity supplied d. market supply schedule and demand

c. price and quantity supplied

If sellers except the price of a good to rise in the future , they are likely to a. put more goods on the market immediately b. raise their prices now c. store goods now and sell more in the future d. set prices according to the law of demand

c. store goods now and sell more in the future

Marginal cost is a. total revenue minus total cost b. total revenue plus total cost c. the cost of producing one more unit of a good d. the difference between fixed and variable costs

c. the cost of producing one more unit of a good

When a business is calculating its operating cost, it must include a. total costs b. fixed costs c. variable costs d. rent for the building

c. variable costs

Which of the following products is likely to have a built-in excise tax? a. shoes b. apples c. clothing d. high-pollutant gasoline

d. high-pollutant gasoline

When a percentage change in price is perfectly matched by an equal percentage change in quantity supplied. elasticity is exactly one. and supply is a. inelastic b. elastic c. variable d. unitary elastic

d. unitary elastic