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- 1. Multiple ChoiceThe Law of Supply states that?The quantity supplied varies inversely with its price.The quantity supplied varies irregularly with its price.The quantity demanded varies inversely with its price.The quantity supplied varies directly with its price.
- 2. Multiple ChoiceAll of the following can cause an increase in supply EXCEPT?a decrease in the cost of inputs.fewer sellers in the market place.an increase in productivity.a change in taxes or subsidies.
- 3. Multiple ChoiceWhich product is likely to have the most elastic supply curve?ice cream conesautomobilesshipsdishwashing machines
- 4. Multiple ChoiceThe supply curve is?downward slopinglevelupward slopingirregular
- 5. Multiple ChoiceIncreased government regulations can cause the supply curve to?shift to the leftshift to the rightincreasedecrease
- 6. Multiple ChoiceAll of the following are stages of production EXCEPT?increasing returnsdiminishing returnsequaling returnsnegative returns
- 7. Multiple ChoiceThe period of production that allows producers to change only the amount of the variable input called labor is?the long runthe short runthe production functiona stage of production
- 8. Multiple Choicea production function shows?changes in output in response to changes in inputchanges in input that result from changes in output.the optimum level of productionthe optimum level of the four factors of production
- 9. Multiple ChoiceIn what order do the three stages of production occur?negative returns, diminishing returns, increasing returns.diminishing returns, increasing returns, negative returns.increasing returns, diminishing returns, negative returns.increasing returns. negative returns, diminishing returns.
- 10. Multiple ChoiceThe stages of production are based on?The way total products change over timeThe way marginal product changes as variable inputs are addedthe way inputs change in response to business decisionsthe way output changes independent of input.
- 11. Multiple ChoiceAll of the following are examples of variable costs EXCEPTLaborFreightInterest payments on bondsElectricity
- 12. Multiple ChoiceCost-benefit decisions making that compares the extra benefits to the extra costs of an action is called?marginal revenuemarginal costsmarginal analysismarginal output
- 13. Multiple ChoiceThe total cost of production is determined by?adding fixed and variable costsadding marginal product changes as variable inputs are added.the way inputs change in response to business decisions.the way output changes independent of input.
- 14. Multiple ChoiceIf a business's fixed costs are large relative to its variable costs, it is likely tobe more profitable than a firm whose fixed costs are small relative to variable costs.produce in Stage 3 of the production function.produce durable goods rather than services.operate longer hours than a firm whose fixed costs are small relative to variable costs.
- 15. Multiple ChoiceProfit is maximized whenmarginal cost is less than marginal revenue.marginal cost is equal to marginal revenue.marginal cost is greater than marginal revenue.marginal cost is growing at the same rate as marginal revenue.
- 16. Multiple ChoiceWhen employees are getting in each others way, the firm is operatingin stage 1 of the production.in stage 2 of the production.in stage 3 of the production.as much as it possibly can.
- 17. Multiple ChoiceTotal cost is the sum of thefixed costs overhead.all variable costs.fixed and variable costs.fixed and marginal costs.
- 18. Multiple ChoiceProfits will be maximized when marginal revenueis double marginal cost.equals marginal costis one-half marginal costexceeds marginal cost.
- 19. Multiple ChoiceIf a business has relatively low variable costs (like a one man gas station), how should they operateShould operate only during the day to save on electricity.Should be open until midnight.Should be open 9-5 because of variable cost.Should be open 24 hours a day.
- 20. Multiple ChoiceWhich of the following is an advantage of an online business?Low variable costs.Low fixed costs.Very little labor needed.All of the above.
- 21. Multiple ChoiceAmount that producers bring to the market at any given pricesupplyquantity suppliedsupply curvesupply elasticity
- 22. Multiple ChoiceMeasure of the way in which quantity supplied responds to a change in pricesupply curvesupply elasticitysupplysubsidy
- 23. Multiple ChoiceA graph showing the various quantities supplied at each and every price that might prevail in the marketsupply curvesubsidysupplysupply elasticity
- 24. Multiple ChoiceMeasure of the way in which quantity supplied responds to a change in price.supplysupply elasticityquantity suppliedsubsidy
- 25. Multiple ChoiceA government payment to an individual, business, or other group to encourage or protect a certain type of economic activity.subsidysupply curvesupplyquantity supplied
- 26. Multiple Choice
How many cup holders are producers willing to supply at a price of $2.50?3,0004,0005,0007,000 - 27. Multiple ChoiceHow Many cup holders are producers willing to supply at a price of $3.00?3,0004,0005,0007,000
- 28. Multiple ChoiceHow many cup holders are producers willing to supply at a price of $6.00?4,0005,0007,0008,000
- 29. Multiple ChoiceHow many workers should be hired?58910
- 30. Multiple ChoiceWhen does stage 3 begin?8 workers11 workers10 workers12 workers
- 31. Multiple ChoiceWhich of the following is not a fixed cost?Executive salariesLaborBuilding RentTaxes
- 32. Multiple ChoiceIf the total product of worker number 5 had been 95, what would the marginal product have been?32333435
- 33. Multiple ChoiceIf the total product of worker number 5 had been 95, what would the marginal cost have been?$3.21$3.39$3.50$3.66
- 34. Multiple ChoiceHow do you find total profit?Adding fixed and variable costssubtracting fixed and variable costssubtracting total costs from total revenueMultiplying marginal revenue by ,marginal product
- 35. Multiple ChoiceIf the total product of worker number 5 had been 95, what would the variable cost have been?360450500540
- 36. Multiple ChoiceStage two represents what?increasing marginal returnDiminishing marginal returnNegative marginal returnEqualing marginal return
- 37. Multiple ChoiceWhich of the following is not a variable cost?Electricity billslaborShippingTaxes
- 38. Multiple ChoiceA producer thinks the price of the product is going to increase, so he withholds supply?shifts rightshifts leftmovement up on the supply curvemovemnt down the supply curve
- 39. Multiple ChoiceA company invests in new technology, but the new machines are constantly breaking down?shifts rightshifts leftmovement up the supply curvemovement down the supply curve
- 40. Multiple ChoiceA company pays for their employees to receive extra training?shifts rightshifts leftmovement up the supply curvemovement down the supply curve
- 41. Multiple ChoiceThe government puts regulations on the auto industry forcing them to put new protective technologies (such as new types of airbags) in every car produced?shifts rightshifts leftmovement up supply curvemovement down supply curve
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