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