Question 1

The inputs used to create two goods are the same. Therefore, these two goods are:

Accepted Answer

A)  substitutes in consumption. 
B)  complements. 
C)  substitutes in production. 
D)  storable. 
A)  substitutes in consumption. 
B)  complements. 
C)  substitutes in production. 
D)  storable. C

Question 2

Good R and good S are substitutes in production. If the price of good S increases, then the:

Accepted Answer

A)  supply of good R decreases, and the quantity supplied of good S increases. 
B)  supply of good R increases, and the supply of good S decreases. 
C)  quantity supplied of good R increases, and the supply of good S decreases. 
D)  quantity supplied of both goods decreases. 
A)  supply of good R decreases, and the quantity supplied of good S increases. 
B)  supply of good R increases, and the supply of good S decreases. 
C)  quantity supplied of good R increases, and the supply of good S decreases. 
D)  quantity supplied of both goods decreases. A

Question 3

. Use the figure Producer Surplus in the Market for Marzipan IV. What will happen to producer surplus in this market if the price of marzipan increases by $2 per pound?
​
Figure: Producer Surplus in the Market for Marzipan IV

Accepted Answer

A)  It increases by $6. 
B)  It decreases by $2. 
C)  It increases by $9. 
D)  It increases by $5. 
A)  It increases by $6. 
B)  It decreases by $2. 
C)  It increases by $9. 
D)  It increases by $5. D

Question 4

Which of the following does NOT cause the supply curve to increase?

Accepted Answer

A)  an increase in the number of sellers 
B)  cheaper resources used to produce the good 
C)  higher consumer incomes 
D)  a decrease in the number of sellers 
A)  an increase in the number of sellers 
B)  cheaper resources used to produce the good 
C)  higher consumer incomes 
D)  a decrease in the number of sellers

Question 5

Use the figure The Supply Curve. Which of the following changes would NOT cause the change shown in this graph?
​
Figure: The Supply Curve II

Accepted Answer

A)  lower input costs 
B)  improved technology 
C)  a higher price for this good 
D)  lower regulations for this industry 
A)  lower input costs 
B)  improved technology 
C)  a higher price for this good 
D)  lower regulations for this industry

Question 6

Good X and good Y are substitutes in production. An increase in the price of good X will cause the:

Accepted Answer

A)  supply of good X to increase and the supply of good Y to decrease. 
B)  supply of good X to increase and the supply of good Y to increase. 
C)  quantity supplied of good X to increase and the supply of good Y to increase. 
D)  quantity supplied of good X to increase and the supply of good Y to decrease. 
A)  supply of good X to increase and the supply of good Y to decrease. 
B)  supply of good X to increase and the supply of good Y to increase. 
C)  quantity supplied of good X to increase and the supply of good Y to increase. 
D)  quantity supplied of good X to increase and the supply of good Y to decrease.

Question 7

What causes a movement to the right along a supply curve for good Z?

Accepted Answer

A)  a decrease in the price of good Z 
B)  an increase in the price of good Z 
C)  an increase in the quantity supplied for good Z at every price 
D)  a decrease in the quantity supplied for good Z at every price 
A)  a decrease in the price of good Z 
B)  an increase in the price of good Z 
C)  an increase in the quantity supplied for good Z at every price 
D)  a decrease in the quantity supplied for good Z at every price

Question 8

The money left over from customer payments after it has subtracted all costs is the firm's:

Accepted Answer

A)  marginal cost. 
B)  producer surplus. 
C)  profit. 
D)  revenue. 
A)  marginal cost. 
B)  producer surplus. 
C)  profit. 
D)  revenue.

Question 9

Suppliers are willing to supply a higher quantity only at higher prices because they:

Accepted Answer

A)  are greedy. 
B)  will charge whatever buyers are willing to pay. 
C)  have to take a market price as given. 
D)  have higher opportunity costs as more is supplied. 
A)  are greedy. 
B)  will charge whatever buyers are willing to pay. 
C)  have to take a market price as given. 
D)  have higher opportunity costs as more is supplied.

Question 10

. Use the figure Emony's Producer Surplus I. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $50. What is Emony's producer surplus at the current price of this good?
​
Figure: Emony's Producer Surplus I

Accepted Answer

A)  $50 
B)  $100 
C)  $40 
D)  $20 
A)  $50 
B)  $100 
C)  $40 
D)  $20

Question 11

Maria is a baker. The price of kolaches increased, and as a result, Maria's supply of croissants decreased. What are these two goods?

Accepted Answer

A)  substitutes in consumption 
B)  complements in production 
C)  complements in consumption 
D)  substitutes in production 
A)  substitutes in consumption 
B)  complements in production 
C)  complements in consumption 
D)  substitutes in production

Question 12

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?
​

Accepted Answer

A)  one mitten supplied and $0 of producer surplus 
B)  one mitten supplied and $2 of producer surplus 
C)  zero mittens supplied and $0 of producer surplus 
D)  two mittens supplied and $6 of producer surplus 
A)  one mitten supplied and $0 of producer surplus 
B)  one mitten supplied and $2 of producer surplus 
C)  zero mittens supplied and $0 of producer surplus 
D)  two mittens supplied and $6 of producer surplus

Question 13

Use the figure The Supply of Radishes. Which of the following changes would cause the movement shown in this graph?
​
Figure: The Supply of Radishes

Accepted Answer

A)  higher wages for radish pickers 
B)  reduced regulation of radish farms 
C)  improved technology for radish harvesting 
D)  an elimination of radish pests 
A)  higher wages for radish pickers 
B)  reduced regulation of radish farms 
C)  improved technology for radish harvesting 
D)  an elimination of radish pests

Question 14

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1.50, how many mittens will Max supply, and how much producer surplus will Max earn?
​

Accepted Answer

A)  four mittens supplied and $3 of producer surplus 
B)  three mittens supplied and $0 of producer surplus 
C)  three mittens supplied and $1.50 of producer surplus 
D)  four mittens supplied and $5 of producer surplus 
A)  four mittens supplied and $3 of producer surplus 
B)  three mittens supplied and $0 of producer surplus 
C)  three mittens supplied and $1.50 of producer surplus 
D)  four mittens supplied and $5 of producer surplus

Question 15

An increase in the quantity supplied of a good leads to _____ for a complement in production of that good.

Accepted Answer

A)  an increase in supply 
B)  a decrease in quantity supplied 
C)  a decrease in supply 
D)  no change in the supply 
A)  an increase in supply 
B)  a decrease in quantity supplied 
C)  a decrease in supply 
D)  no change in the supply

Question 16

Soybeans can be used to produce meatless sausages or biodiesel fuel. If the price of biodiesel fuel begins to increase, what would we expect to see?

Accepted Answer

A)  an increase in the quantity of biodiesel fuel supplied and a rightward shift in the supply of meatless sausages 
B)  a decrease in the quantity of biodiesel fuel supplied and a leftward shift in the supply of meatless sausages 
C)  an increase in the quantity of biodiesel fuel supplied and a leftward shift in the supply of meatless sausages 
D)  a rightward shift in the supply of biodiesel fuel and a leftward shift in the supply of meatless sausages 
A)  an increase in the quantity of biodiesel fuel supplied and a rightward shift in the supply of meatless sausages 
B)  a decrease in the quantity of biodiesel fuel supplied and a leftward shift in the supply of meatless sausages 
C)  an increase in the quantity of biodiesel fuel supplied and a leftward shift in the supply of meatless sausages 
D)  a rightward shift in the supply of biodiesel fuel and a leftward shift in the supply of meatless sausages

Question 17

Which of the following would decrease the supply of leather boots?

Accepted Answer

A)  better technology in boot production methods 
B)  a decrease in the price of leather boots 
C)  an increase in the price of leather 
D)  a decrease in the price of sewing machines used to sew boots together 
A)  better technology in boot production methods 
B)  a decrease in the price of leather boots 
C)  an increase in the price of leather 
D)  a decrease in the price of sewing machines used to sew boots together

Question 18

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how many mittens will Max supply, and how much producer surplus will Max earn?
​

Accepted Answer

A)  four mittens supplied and $3 of producer surplus 
B)  three mittens supplied and $6 of producer surplus 
C)  three mittens supplied and $0.50 of producer surplus 
D)  four mittens supplied and $6 of producer surplus 
A)  four mittens supplied and $3 of producer surplus 
B)  three mittens supplied and $6 of producer surplus 
C)  three mittens supplied and $0.50 of producer surplus 
D)  four mittens supplied and $6 of producer surplus

Question 19

When a good is sold, producer surplus is the difference between _____ received and _____ incurred.

Accepted Answer

A)  price; average total cost 
B)  price; total cost 
C)  marginal benefit; marginal cost 
D)  price; marginal cost 
A)  price; average total cost 
B)  price; total cost 
C)  marginal benefit; marginal cost 
D)  price; marginal cost

Question 20

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how much total producer surplus is earned by these three sellers?
​

Accepted Answer

A)  $2 
B)  $4 
C)  $3.50 
D)  $3 
A)  $2 
B)  $4 
C)  $3.50 
D)  $3

The inputs used to create two goods are the same. Therefore, these two goods are:

Good R and good S are substitutes in production. If the price of good S increases, then the:

. Use the figure Producer Surplus in the Market for Marzipan IV. What will happen to producer surplus in this market if the price of marzipan increases by $2 per pound? Figure: Producer Surplus in the Market for Marzipan IV

Which of the following does NOT cause the supply curve to increase?

Use the figure The Supply Curve. Which of the following changes would NOT cause the change shown in this graph? Figure: The Supply Curve II

Good X and good Y are substitutes in production. An increase in the price of good X will cause the:

What causes a movement to the right along a supply curve for good Z?

The money left over from customer payments after it has subtracted all costs is the firm's:

Suppliers are willing to supply a higher quantity only at higher prices because they:

. Use the figure Emony's Producer Surplus I. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $50. What is Emony's producer surplus at the current price of this good? Figure: Emony's Producer Surplus I

Maria is a baker. The price of kolaches increased, and as a result, Maria's supply of croissants decreased. What are these two goods?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?

Use the figure The Supply of Radishes. Which of the following changes would cause the movement shown in this graph? Figure: The Supply of Radishes

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1.50, how many mittens will Max supply, and how much producer surplus will Max earn?

An increase in the quantity supplied of a good leads to _____ for a complement in production of that good.

Soybeans can be used to produce meatless sausages or biodiesel fuel. If the price of biodiesel fuel begins to increase, what would we expect to see?

Which of the following would decrease the supply of leather boots?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how many mittens will Max supply, and how much producer surplus will Max earn?

When a good is sold, producer surplus is the difference between _ received and _ incurred.

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how much total producer surplus is earned by these three sellers?

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

Exam 4: Supply

The inputs used to create two goods are the same. Therefore, these two goods are:

Good R and good S are substitutes in production. If the price of good S increases, then the:

. Use the figure Producer Surplus in the Market for Marzipan IV. What will happen to producer surplus in this market if the price of marzipan increases by $2 per pound? ​ Figure: Producer Surplus in the Market for Marzipan IV

Which of the following does NOT cause the supply curve to increase?

Use the figure The Supply Curve. Which of the following changes would NOT cause the change shown in this graph? ​ Figure: The Supply Curve II

Good X and good Y are substitutes in production. An increase in the price of good X will cause the:

What causes a movement to the right along a supply curve for good Z?

The money left over from customer payments after it has subtracted all costs is the firm's:

Suppliers are willing to supply a higher quantity only at higher prices because they:

. Use the figure Emony's Producer Surplus I. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $50. What is Emony's producer surplus at the current price of this good? ​ Figure: Emony's Producer Surplus I

Maria is a baker. The price of kolaches increased, and as a result, Maria's supply of croissants decreased. What are these two goods?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how many mittens will Eliza supply, and how much producer surplus will Eliza earn? ​

Use the figure The Supply of Radishes. Which of the following changes would cause the movement shown in this graph? ​ Figure: The Supply of Radishes

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1.50, how many mittens will Max supply, and how much producer surplus will Max earn? ​

An increase in the quantity supplied of a good leads to _____ for a complement in production of that good.

Soybeans can be used to produce meatless sausages or biodiesel fuel. If the price of biodiesel fuel begins to increase, what would we expect to see?

Which of the following would decrease the supply of leather boots?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how many mittens will Max supply, and how much producer surplus will Max earn? ​

When a good is sold, producer surplus is the difference between _____ received and _____ incurred.

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how much total producer surplus is earned by these three sellers? ​

Foundations of Economics

Extension: Understanding Graphs

Markets and Economies

Demand

Market Equilibrium

Elasticity

Consumer Behavior

Production Costs

Perfect Competition

Market Power

Factor Markets

Market Failure and Government Failure

Measuring an Economys Performance

Aggregate Demand and Aggregate Supply

Fiscal Policy

Money and Banking

Monetary Policy

Economic Growth and Development

International Trade and Finance

Filters

. Use the figure Producer Surplus in the Market for Marzipan IV. What will happen to producer surplus in this market if the price of marzipan increases by $2 per pound? Figure: Producer Surplus in the Market for Marzipan IV

Use the figure The Supply Curve. Which of the following changes would NOT cause the change shown in this graph? Figure: The Supply Curve II

. Use the figure Emony's Producer Surplus I. Emony is a florist selling flower arrangements. The current price of a flower arrangement is $50. What is Emony's producer surplus at the current price of this good? Figure: Emony's Producer Surplus I

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?

Use the figure The Supply of Radishes. Which of the following changes would cause the movement shown in this graph? Figure: The Supply of Radishes

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1.50, how many mittens will Max supply, and how much producer surplus will Max earn?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how many mittens will Max supply, and how much producer surplus will Max earn?

When a good is sold, producer surplus is the difference between _ received and _ incurred.

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $2, how much total producer surplus is earned by these three sellers?