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Supply/Demand Review
Supply/Demand Review
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1
The cost of producing one more unit of a good.
fixed cost
total cost
marginal cost
variable cost
2
Which of the following is an example of a good with an inelastic supply?
hats
toothbrushes
beanbags
apples
3
Which of the following receives government subsidies to protect the pop. rather than economics?
a national car company
tobacco growers
national airlines
small farmers
4
A cost that rises or falls depending on how much is produced is a(n)
labor cost
variable cost
operating cost
fixed cost
5
What does it mean when the demand for a product is inelastic?
A price increase does not have an impact on buying habits.
Customers are sensitive to the price of the product.
There are very few satisfactory substitutes for the product.
People will not buy any of the product when price increases.
6
What is the basic principle of the law of demand?
Services are of interest in the same way that goods are.
The higher the price, the more people want the good.
Everyone has a limited income that they will spend.
When a good's price is lower, people will buy more of it.
7
The additional income from selling one more unit of a good, sometimes equal to price, is
increasingmarginal returns.
marginalrevenue.
themarginal product of labor.
a variable
8
What shows the quantities of products demanded at each price by all consumers in a market?
an elasticity and consumption list
a demand schedule
a market pricing list
a market demand schedule
9
How is future price related to current demand?
If the price is expected to rise, current demand will drop.
Future price is not related to current demand.
If the price is expected to fall, current demand will rise.
If the price is expected to rise, current demand will rise.
10
What do sellers do if they expect the price of goods to increase in the near future?
store the goods until the price increases.
sell the goods now, but try and get a high price for them.
store goods indefinitely regardless of earn the price rises
sell goods now & try to invest the money w/o resupplying.
11
Which goods would be likely to be bought in the same quantity even if it doubled in price?
medicine
computers
shoes
jet skis
12
What is a demand curve?
a graphic representation of ademand schedule
table listing thequantity of a good all consumers will buy
a table that lists quantityof a good at each different price
consumers buying more of agood when its price decreases
13
The additional income from selling one more unit of a good.
total profit
marginal profit
total revenue
marginal revenue
14
As the price of a slice of pizza increases, whathappens to the quantity demanded?
It increases.
Nothing changes.
It remains the same.
It decreases.
15
What factor has the greatest influence on elasticity and inelasticity of supply?
time
labor
financing
profit
16
Total cost is
level of production when the MPL decreases
change in output from hiring one additional unit of labor.
thecost of operating a facility, such as a store or factory.
fixed cost plus variable cost
17
What is the tendency of suppliers to offer more of a good at a higher price?
supply
law of supply
quantity supplied
elasticity of supply
18
When a consumer is able and willing to buy a good or service, he or she creates:
consumption
elasticity
allocation
demand
19
What are inferior goods?
goods that no one wants to buy
goods that are not well produced
goods for which the demand rises when income falls
goods for which demand falls when income rises
20
A level at which the marginal production goes up with new investment or labor.
marginal returns
diminishing marginal returns
increasing profit
increasing marginal returns
21
When the selling price of a good goes up, what happens to quantity supplied?
Profit made on each item goes down.
It becomes practical to produce more goods.
There is no relationship between the two.
Cost of production goes down.
22
A graph of the quantity supplied of a good by all suppliers at different prices.
supply curve
demand curve
market supply schedule
market supply curve
23
A cost that does not change, no matter how much of a good is produced
marginal cost
fixed cost
variable cost
operating cost
24
A chart that lists how much of a good a supplier will offer at different prices.
supply schedule
demand schedule
market demand schedule
market supply schedule
25
What determines how a change in prices will affect total revenue for a company?
elasticity of demand
the consumers' incomes
the company's pricing policy
values of elasticity
