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Updated Econ Chapter 5-6 Supply and Demand Test Review Flashcards | StudBud
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Updated Econ Chapter 5-6 Supply and Demand Test Review
Updated Econ Chapter 5-6 Supply and Demand Test Review
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#5-6 review quiz
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Questions
25
Answers
1
At what point does quantity demanded and quantity supplied become equal?
Ceiling
Equilibrium
Maximum
Minimum
2
According to the law of supply.
If the price of a good rises some firms will produce less
The lower the price the larger the quantity consumed
The higher the price the larger the quantity produced
3
Which of the following is a fixed cost for a store?
Short-term workers
Inventory
Rent
Advertising
4
A chart that lists how much of a good a supplier will offer at various prices.
Increasing Returns
Supply Schedule
Elasticity
Supply Curve
5
Which of the following is an example of a variable cost?
Rent
Raw Materials
Insurance
6
A factor that can change.
Law of Supply
Marginal Revenue
Marginal Cost
Variable
7
Total revenue is defined as
MR = MC
P*Q
E = MC SQUARED
A = B*C
8
Which of the following is the best example of the law of supply?
A milling company builds a new factory to process flour.
A company buys a new dishwasher to make their work easier.
Sandwich shop increases supply when the price is increased.
9
Level where marginal product goes up with a new investment.
Elasticity
Increasing Returns
Diminishing Returns
Supply Curve
10
What factor has the greatest influence on elasticity and inelasticity of supply?
Labor
Finance
Profit
Time
11
The change in output from adding one more worker is the
Increasing marginal returns
Diminishing marginal returns
Negative marginal returns
Marginal product of labor
12
Quantity supplied decreases as price decreases.
Marginal Revenue
Variable
Law of Supply
Marginal Product of Labor
13
Which of the following is an example of a good with an inelastic supply?
Beanbags
Toothbrushes
Apples
Hats
14
Which of the following leads to an increase in supply
A change in the law of supply
Diminishing marginal returns
A decrease in the cost of raw materials
An increase in cost of raw materials
15
A market supply curve shows
How the supply of goods is kept in balance.
The quantity supplied by producers at different prices.
How prices affect the cost of raw materials.
16
Change in output from adding one additional worker.
Marginal Product of Labor
Law of Supply
Variable
Marginal Revenue
17
If sellers expect the price of a good to rise in the future, they will
Store goods now and sell more in the future
Set prices according to the law of demand
Raise their prices now
Put more goods on the market
18
A graph of the quantity supplied of a good by all suppliers at different prices.
Increasing Returns
Supply Schedule
Diminishing Returns
Supply Curve
19
When quantity demanded is more than the quantity supplied what economic situation has occurred?
Surplus
Shortage
Perfect
Equilibrium.
20
Which of the following businesses has elastic supply?
Hair cutting
Car Manufacturing
Apple farming
21
Level where total product increases at a
smaller
rate with new investment.
Supply Schedule
Increasing Returns
Diminishing Returns
Elasticity
22
P * Q=== Price times quantity
Substitution Effect
Normal Good
Total Revenue
Inelastic
23
A measure of the way a quantity supplied reacts to a change in price.
Elasticity
Supply Schedule
Supply Curve
Diminishing Returns
24
Price multiplied by quantity.
Subsidy
Total Revenue
Profit Max
Total Cost
25
What is the effect of import restrictions on prices?
They cause prices to rise
They cause prices to drop
They often cause prices to rise steeply then drop
They usually do not have a lasting effect on price
