Question 1

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $6, how many mittens will Eliza supply, and how much producer surplus will Eliza 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 of producer surplus 
D)  two 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 of producer surplus 
D)  two mittens supplied and $6 of producer surplus

Question 2

Use the figure Emony's Producer Surplus V. How much does Emony's producer surplus decrease if the price decreases from $65 to $45?
​
Figure: Emony's Producer Surplus V

Accepted Answer

A)  $75 
B)  $45 
C)  $30 
D)  $20 
A)  $75 
B)  $45 
C)  $30 
D)  $20

Question 3

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned if the price of this good is $1.75?
​

Accepted Answer

A)  $0 
B)  $1.75 
C)  $0.50 
D)  $2.25 
A)  $0 
B)  $1.75 
C)  $0.50 
D)  $2.25

Question 4

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1.50, 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

Question 5

Janet has an inventory of 100 houseplants. She expects that she can get a higher price for the houseplants she sells in one month. How does this affect her supply of houseplants today and in one month?

Accepted Answer

A)  Her supply today decreases; her supply next month increases. 
B)  Her supply today increases; her supply next month decreases. 
C)  Her supply today is unaffected; her supply next month increases. 
D)  Her supply today increases; her supply next month increases. 
A)  Her supply today decreases; her supply next month increases. 
B)  Her supply today increases; her supply next month decreases. 
C)  Her supply today is unaffected; her supply next month increases. 
D)  Her supply today increases; her supply next month increases.

Question 6

What is producer surplus?

Accepted Answer

A)  another name for profit 
B)  another name for marginal benefit 
C)  the difference between the price of a good and its marginal cost 
D)  the difference between the price of a good and the cost of producing a typical unit 
A)  another name for profit 
B)  another name for marginal benefit 
C)  the difference between the price of a good and its marginal cost 
D)  the difference between the price of a good and the cost of producing a typical unit

Question 7

Use the figure A Change in the Supply Curve. What change has occurred in this graph?
​
Figure: A Change in the Supply Curve

Accepted Answer

A)  an increase in supply 
B)  an increase in quantity supplied 
C)  a decrease in supply 
D)  a decrease in quantity supplied 
A)  an increase in supply 
B)  an increase in quantity supplied 
C)  a decrease in supply 
D)  a decrease in quantity supplied

Question 8

Use the figure A Change in the Supply Curve II. What could have caused the change shown here?
​
Figure: A Change in the Supply Curve II

Accepted Answer

A)  The price of a complement in production of this good decreased. 
B)  The number of buyers increased. 
C)  The cost of resources decreased. 
D)  Consumer incomes increased, and this is a normal good. 
A)  The price of a complement in production of this good decreased. 
B)  The number of buyers increased. 
C)  The cost of resources decreased. 
D)  Consumer incomes increased, and this is a normal good.

Question 9

When a firm holds goods in temporary storage until the time is ripe for selling the goods, a firm is:

Accepted Answer

A)  increasing the supply of goods today. 
B)  reducing its profit. 
C)  manipulating the market. 
D)  holding inventory. 
A)  increasing the supply of goods today. 
B)  reducing its profit. 
C)  manipulating the market. 
D)  holding inventory.

Question 10

When the production of beef increased, the supply of leather increased. What are these two goods?

Accepted Answer

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

Question 11

Use the figure The Supply Curve. What caused the movement from point X to point Y?
​
Figure: The Supply Curve

Accepted Answer

A)  The price for a complement in production of this good increased. 
B)  The price of a substitute in production of this good increased. 
C)  The price of this good increased. 
D)  The price of this good decreased. 
A)  The price for a complement in production of this good increased. 
B)  The price of a substitute in production of this good increased. 
C)  The price of this good increased. 
D)  The price of this good decreased.

Question 12

When the price of honey decreased, the supply of almonds decreased. What is the relationship between honey and almonds?

Accepted Answer

A)  Honey is an input into the production of almonds. 
B)  Honey and almonds are substitutes in production. 
C)  Honey and almonds are complements in production. 
D)  Honey and almonds are unrelated goods. 
A)  Honey is an input into the production of almonds. 
B)  Honey and almonds are substitutes in production. 
C)  Honey and almonds are complements in production. 
D)  Honey and almonds are unrelated goods.

Question 13

Industry analysts for the pumpkin spice muffin market have concluded that the supply curve has recently shifted to the left. What might have caused this?

Accepted Answer

A)  Producers of pumpkin spice muffins are expecting future muffin prices to fall. 
B)  The number of pumpkin spice muffin producers has increased. 
C)  The technology used in baking the muffins has improved. 
D)  The price of pumpkin spice flavoring has increased. 
A)  Producers of pumpkin spice muffins are expecting future muffin prices to fall. 
B)  The number of pumpkin spice muffin producers has increased. 
C)  The technology used in baking the muffins has improved. 
D)  The price of pumpkin spice flavoring has increased.

Question 14

The _____ cost is the additional cost of supplying one more unit of a good or service.

Accepted Answer

A)  total 
B)  average 
C)  fixed 
D)  marginal 
A)  total 
B)  average 
C)  fixed 
D)  marginal

Question 15

Ricotta and mozzarella are kinds of cheese. When the price of mozzarella increased, the supply of ricotta increased. What are these two goods?

Accepted Answer

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

Question 16

Good A and good B are complements in production. What happens to the supply of good A and the supply of good B if the price of good B increases?

Accepted Answer

A)  The quantity supplied of good B increases, and the supply of good A decreases. 
B)  The quantity supplied of good B decreases, and the supply of good A decreases. 
C)  The quantity supplied of good B increases, and the supply of good A increases. 
D)  The quantity supplied of good B increases, and the quantity supplied of good A decreases. 
A)  The quantity supplied of good B increases, and the supply of good A decreases. 
B)  The quantity supplied of good B decreases, and the supply of good A decreases. 
C)  The quantity supplied of good B increases, and the supply of good A increases. 
D)  The quantity supplied of good B increases, and the quantity supplied of good A decreases.

Question 17

The temporary storage of goods by firms is called:

Accepted Answer

A)  housing. 
B)  revenue. 
C)  profit. 
D)  inventory. 
A)  housing. 
B)  revenue. 
C)  profit. 
D)  inventory.

Question 18

A tsunami destroys many power plants on the coast of a country. What change can be expected in the supply of electricity in that country?

Accepted Answer

A)  a movement to the right along a supply curve 
B)  a movement to the left along a supply curve 
C)  a shift to the right of the supply curve 
D)  a shift to the left of the supply curve 
A)  a movement to the right along a supply curve 
B)  a movement to the left along a supply curve 
C)  a shift to the right of the supply curve 
D)  a shift to the left of the supply curve

Question 19

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1, how much total producer surplus is earned by these three sellers?
​

Accepted Answer

A)  $0.50 
B)  $0 
C)  $1.50 
D)  $1 
A)  $0.50 
B)  $0 
C)  $1.50 
D)  $1

Question 20

The reason that unexpected bad weather can affect the supply curve is that it changes:

Accepted Answer

A)  the cost of producing a good. 
B)  buyers' incomes. 
C)  buyers' willingness to buy a good. 
D)  the laws about selling the good. 
A)  the cost of producing a good. 
B)  buyers' incomes. 
C)  buyers' willingness to buy a good. 
D)  the laws about selling the good.

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $6, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?

Use the figure Emony's Producer Surplus V. How much does Emony's producer surplus decrease if the price decreases from $65 to $45? Figure: Emony's Producer Surplus V

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned if the price of this good is $1.75?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1.50, how much total producer surplus is earned by these three sellers?

Janet has an inventory of 100 houseplants. She expects that she can get a higher price for the houseplants she sells in one month. How does this affect her supply of houseplants today and in one month?

What is producer surplus?

Use the figure A Change in the Supply Curve. What change has occurred in this graph? Figure: A Change in the Supply Curve

Use the figure A Change in the Supply Curve II. What could have caused the change shown here? Figure: A Change in the Supply Curve II

When a firm holds goods in temporary storage until the time is ripe for selling the goods, a firm is:

When the production of beef increased, the supply of leather increased. What are these two goods?

Use the figure The Supply Curve. What caused the movement from point X to point Y? Figure: The Supply Curve

When the price of honey decreased, the supply of almonds decreased. What is the relationship between honey and almonds?

Industry analysts for the pumpkin spice muffin market have concluded that the supply curve has recently shifted to the left. What might have caused this?

The _____ cost is the additional cost of supplying one more unit of a good or service.

Ricotta and mozzarella are kinds of cheese. When the price of mozzarella increased, the supply of ricotta increased. What are these two goods?

Good A and good B are complements in production. What happens to the supply of good A and the supply of good B if the price of good B increases?

The temporary storage of goods by firms is called:

A tsunami destroys many power plants on the coast of a country. What change can be expected in the supply of electricity in that country?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1, how much total producer surplus is earned by these three sellers?

The reason that unexpected bad weather can affect the supply curve is that it changes:

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

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $6, how many mittens will Eliza supply, and how much producer surplus will Eliza earn? ​

Use the figure Emony's Producer Surplus V. How much does Emony's producer surplus decrease if the price decreases from $65 to $45? ​ Figure: Emony's Producer Surplus V

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned if the price of this good is $1.75? ​

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1.50, how much total producer surplus is earned by these three sellers? ​

Janet has an inventory of 100 houseplants. She expects that she can get a higher price for the houseplants she sells in one month. How does this affect her supply of houseplants today and in one month?

What is producer surplus?

Use the figure A Change in the Supply Curve. What change has occurred in this graph? ​ Figure: A Change in the Supply Curve

Use the figure A Change in the Supply Curve II. What could have caused the change shown here? ​ Figure: A Change in the Supply Curve II

When a firm holds goods in temporary storage until the time is ripe for selling the goods, a firm is:

When the production of beef increased, the supply of leather increased. What are these two goods?

Use the figure The Supply Curve. What caused the movement from point X to point Y? ​ Figure: The Supply Curve

When the price of honey decreased, the supply of almonds decreased. What is the relationship between honey and almonds?

Industry analysts for the pumpkin spice muffin market have concluded that the supply curve has recently shifted to the left. What might have caused this?

The _____ cost is the additional cost of supplying one more unit of a good or service.

Ricotta and mozzarella are kinds of cheese. When the price of mozzarella increased, the supply of ricotta increased. What are these two goods?

Good A and good B are complements in production. What happens to the supply of good A and the supply of good B if the price of good B increases?

The temporary storage of goods by firms is called:

A tsunami destroys many power plants on the coast of a country. What change can be expected in the supply of electricity in that country?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1, how much total producer surplus is earned by these three sellers? ​

The reason that unexpected bad weather can affect the supply curve is that it changes:

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 table Marginal Cost of Producing Mittens. If mittens are sold at a price of $6, how many mittens will Eliza supply, and how much producer surplus will Eliza earn?

Use the figure Emony's Producer Surplus V. How much does Emony's producer surplus decrease if the price decreases from $65 to $45? Figure: Emony's Producer Surplus V

Use the table Marginal Cost of Producing Candles. What is the producer surplus earned if the price of this good is $1.75?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1.50, how much total producer surplus is earned by these three sellers?

Use the figure A Change in the Supply Curve. What change has occurred in this graph? Figure: A Change in the Supply Curve

Use the figure A Change in the Supply Curve II. What could have caused the change shown here? Figure: A Change in the Supply Curve II

Use the figure The Supply Curve. What caused the movement from point X to point Y? Figure: The Supply Curve

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $1, how much total producer surplus is earned by these three sellers?