What effect do non-price determinants have on supply?

Influence quantity of goods producers will supply outside of price

What would explain the -$10 Profit at Q=7?

The variable costs to make that much quantity is not efficient

What is the purpose of an excise tax?

To increase costs to producers to have them produce less

Which of the following is a NOT a reason that variable costs increase with production?

Monthly rent on a building owned by a landlord

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Econ Topic 3.1-3.6 Quiz

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Answers

1
What effect do non-price determinants have on supply?
Influence quantity of goods producers will supply outside of price
Characteristics that determine the market price of goods/services
Variables such as changes in consumer preferences and income
Direct influence on quantity of goods consumers are willing to purchase
2
The rise of an input cost will cause the supply curve to ...
shift to the right
shift to the left
Stay the same
Move along line
3
Price and Quantity Supplied have an inverse relationship. A decrease in one causes an increase in the other
True
False
4
Expenses that remain constant for a firm, such as rent or capital costs
Marginal Revenue
Subsidies
Variable Cost
Fixed Cost
5
What would explain the -$10 Profit at Q=7?
A worker strike for asking them to make that much
Increasing Marginal Returns
The variable costs to make that much quantity is not efficient
Imports of raw materials have decreased
6
The benefit to the company by producing one more unit
Diminishing Return
Total Revenue
Marginal Return
Marginal Cost
7
What is the purpose of an excise tax?
To enforce health and safety codes with required equipment purchases
To place restrictions on the import of certain products
To increase costs to producers to have them produce less
To encourage the consumption of specific goods and services
8
Which of the following is a NOT a reason that variable costs increase with production?
Monthly rent on a building owned by a landlord
Increased labor costs
Equipment maintenance costs
Increased raw material expenses
9
A product consumers think is a necessity will tend to have elastic demand
False
True
10
An increase in consumer income that leads to a decrease in demand of a good would mean the product is
Inferior
Obsolete
Prototype
Normal

Econ Topic 3.1-3.6 Quiz Flashcards | StudBud