Ch 5 econ

Question 1

The main objective of almost all businesses that charge for their product is

Accepted Answer

To make a profit

Question 2

Salaries, rent, and insurance are all examples of Fixed Costs

Accepted Answer

true

Question 3

Change in output or production that results from adding one more worker

Accepted Answer

marginal product of labor

Question 4

Production costs are a major factor in determining supply

Accepted Answer

True

Question 5

A condition of rising prices where the value of cash in a person’s pocket decreases

Accepted Answer

inflation

Question 6

A cost of production that remains the same regardless of amount supplied

Accepted Answer

fixed cost

Question 7

Oil companies react when 100 more years’ worth of oil is discovered

Accepted Answer

B

Question 8

Basic principle of supply that states, “when price increases supply increases"

Accepted Answer

law of supply

Question 9

A graphical representation of the law of supply

Accepted Answer

supply curve

Question 10

In terms of elasticity, all firms are able to become elastic

Accepted Answer

In the long run

Question 11

Variable costs tend to

Accepted Answer

both A & C

Question 12

A massive labor shortage makes its impossible to pick as many oranges as last year

Accepted Answer

A

Question 13

when the government pays businesses not to produce their good

Accepted Answer

subsidy

Question 14

The reason companies increase supply when price increases is

Accepted Answer

To make the most amount of profits by selling more at a high price

Question 15

additional income from selling one more unit

Accepted Answer

marginal revenue

Question 16

Charge by the government to produce or sell a good

Accepted Answer

excise tax

Question 17

Businesses plan their output based on

Accepted Answer

Cost of production and price

Question 18

Chart that lists how much of a good a supplier is willing to offer at different prices

Accepted Answer

supply schedule

Question 19

In the short run, supply is inelastic

Accepted Answer

True

Question 20

The government only issues subsidies to protect growing businesses

Accepted Answer

False

Question 21

The X axis & the Y axis on a supply curve represent

Accepted Answer

Supply and Price

Question 22

If a company predicts a shortage of resources in the future, they may decrease immediate supply

Accepted Answer

True

Question 23

government control over production of goods

Accepted Answer

regulation

Question 24

What is true about a supply curve when compared to a demand curve

Accepted Answer

They travel in opposite directions

Question 25

An increase in technology will lead to

Accepted Answer

Cheaper input costs therefore increased supply

Question 26

Everything it costs to produce a good. (Fixed and Variable)

Accepted Answer

total cost

Question 27

American economy is never affected by problems in countries overseas

Accepted Answer

false

Question 28

Excise tax will have no impact on supply

Accepted Answer

False

Question 29

cost of increasing the input of land, labor, or capital by one unit

Accepted Answer

marginal cost

Question 30

What will cause a decrease in quantity supplied for oranges:

Accepted Answer

Both A and C

Question 31

amount a supplier is willing and able to produce

Accepted Answer

quantity supplied

Question 32

Increase in technology makes the production of rocking chairs much cheaper

Accepted Answer

B

Question 33

An example of a subsidy would be

Accepted Answer

Airbus being supported financially by the French government

Question 34

Price of computers skyrocket, computer companies react

Accepted Answer

B

Question 35

How drastically a business increases or decreases supply when price changes

Accepted Answer

elasticity of supply

Question 36

The law of supply describes the relationship between supply and demand

Accepted Answer

False

Question 37

Workers agree to wage & fringe benefit cuts

Accepted Answer

B

Question 38

A new law limits the amount of prescription drugs a person can take in a year

Accepted Answer

A

Question 39

There is a positive relationship between supply and price

Accepted Answer

True

Question 40

to increase supply firms need to hire more labor, when one added unit of labor decreases productivity, they have a

Accepted Answer

Negative Marginal return

Question 41

Government places a heavy tax on the production of cigarettes

Accepted Answer

A

Question 42

When price increases, supply decreases

Accepted Answer

False

Question 43

to determine the most efficient amt of labor, increase by 1 unit at a time and find the minimal value of return

Accepted Answer

True

Question 44

The only impact on supply is price

Accepted Answer

false

Question 45

Which of the following businesses would have the most elastic supply

Accepted Answer

Pizza Restaurant

Question 46

Government subsidies are issued in order to….

Accepted Answer

all of the above

Question 47

A cost of production that changes from month to month

Accepted Answer

variable cost

Question 48

Amount of goods available

Accepted Answer

supply

Question 49

Government offers farm subsidies for farmers to increase price of farm goods

Accepted Answer

A

Ch 5 econ

Questions 49

Ch 5 econ

Questions 49