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Honors Economics Chapter 5-6 Supply and Demand Test Review Flashcards | StudBud
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Honors Economics Chapter 5-6 Supply and Demand Test Review
Honors Economics Chapter 5-6 Supply and Demand Test Review
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#5-6 review quiz
Flashcards
33 cards
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Questions
33
Answers
1
A measure of the way a quantity supplied reacts to a change in price.
Supply Curve
Diminishing Returns
Elasticity
Supply Schedule
2
According to the law of supply.
The higher the price the larger the quantity produced
If the price of a good rises some firms will produce less
The lower the price the larger the quantity consumed
3
Change in output from adding one additional worker.
Marginal Product of Labor
Law of Supply
Marginal Revenue
Variable
4
At what point does quantity demanded and quantity supplied become equal?
Ceiling
Maximum
Equilibrium
Minimum
5
A producer’s profits are maximized when
Marginal costs are equal to marginal revenue
Marginal cost are equal to fixed costs plus variable cost
Marginal costs result in decreasing marginal returns
6
What is the effect of import restrictions on prices?
They often cause prices to rise steeply then drop
They cause prices to rise
They usually do not have a lasting effect on price
They cause prices to drop
7
A payment to the government on the production or sale of a good.
Subsidy
Total Revenue
Profit Max
Excise Tax
8
Which of the following is the best example of the law of supply?
A milling company builds a new factory to process flour.
Sandwich shop increases supply when the price is increased.
A company buys a new dishwasher to make their work easier.
9
Which of the following is a fixed cost for a store?
Inventory
Short-term workers
Advertising
Rent
10
Marginal Revenue = Marginal Cost
Subsidy
Total Revenue
Excise Tax
Profit Max
11
A subsidy is
Government payment
Form of regulation
A tax
12
Level where marginal product goes up with a new investment.
Elasticity
Increasing Returns
Diminishing Returns
Supply Curve
13
The cost of producing one more unit of a good.
Law of Supply
Marginal Cost
Variable
Marginal Revenue
14
Which of the following is an example of a variable cost?
Rent
Raw Materials
Insurance
15
Which of the following is an example of a good with an inelastic supply?
Apples
Hats
Toothbrushes
Beanbags
16
Which of the following leads to an increase in supply
A change in the law of supply
A decrease in the cost of raw materials
An increase in cost of raw materials
Diminishing marginal returns
17
P * Q=== Price times quantity
Substitution Effect
Total Revenue
Normal Good
Inelastic
18
Fixed cost plus variable cost.
Total Cost
Profit Max
Subsidy
Total Revenue
19
What factor has the greatest influence on elasticity and inelasticity of supply?
Finance
Labor
Profit
Time
20
A factor that can change.
Marginal Cost
Marginal Revenue
Variable
Law of Supply
21
The change in output from adding one more worker is the
Diminishing marginal returns
Marginal product of labor
Increasing marginal returns
Negative marginal returns
22
A market supply curve shows
The quantity supplied by producers at different prices.
How prices affect the cost of raw materials.
How the supply of goods is kept in balance.
23
Price multiplied by quantity.
Total Revenue
Subsidy
Profit Max
Total Cost
24
Total revenue is defined as
E = MC SQUARED
MR = MC
P*Q
A = B*C
25
Level where total product increases at a
smaller
rate with new investment.
Increasing Returns
Elasticity
Diminishing Returns
Supply Schedule
26
When quantity demanded is more than the quantity supplied what economic situation has occurred?
Equilibrium.
Shortage
Perfect
Surplus
27
If sellers expect the price of a good to rise in the future, they will
Set prices according to the law of demand
Store goods now and sell more in the future
Raise their prices now
Put more goods on the market
28
Government payment that supports a business or market.
Profit Max
Total Cost
Subsidy
Excise Tax
29
Which of the following businesses has elastic supply?
Hair cutting
Apple farming
Newspaper publishing
30
The extra income from selling one more unit of a good.
Variable
Law of Supply
Marginal Cost
Marginal Revenue
31
Quantity supplied decreases as price decreases.
Variable
Marginal Revenue
Marginal Product of Labor
Law of Supply
32
A graph of the quantity supplied of a good by all suppliers at different prices.
Increasing Returns
Supply Curve
Diminishing Returns
Supply Schedule
33
A chart that lists how much of a good a supplier will offer at various prices.
Increasing Returns
Supply Schedule
Elasticity
Supply Curve
