Question 1

Use the table The Supply Schedule for Beaded Necklaces. What is the market supply at a price of $10?
​

Accepted Answer

A)  one 
B)  two 
C)  10 
D)  nine 
A)  one 
B)  two 
C)  10 
D)  nine

Question 2

What is a supply schedule?

Accepted Answer

A)  a table indicating the quantities that are supplied at various prices 
B)  a graph showing the quantities that are sold at various prices 
C)  a table describing what people are willing to buy at various prices 
D)  a graph showing the quantities that are bought at various prices 
A)  a table indicating the quantities that are supplied at various prices 
B)  a graph showing the quantities that are sold at various prices 
C)  a table describing what people are willing to buy at various prices 
D)  a graph showing the quantities that are bought at various prices

Question 3

Economists who study the market for rubber automobile tires have concluded that the supply curve has recently shifted to the right. What might have caused this?

Accepted Answer

A)  a decrease in the price of rubber 
B)  a hurricane that destroyed many rubber tree plantations in South America 
C)  an increase in the price of automobile tires 
D)  the expectations of producers of automobile tires that future tire prices will rise 
A)  a decrease in the price of rubber 
B)  a hurricane that destroyed many rubber tree plantations in South America 
C)  an increase in the price of automobile tires 
D)  the expectations of producers of automobile tires that future tire prices will rise

Question 4

Good L and good M are complements in production. If the price of good L decreases, then the quantity supplied of good L:

Accepted Answer

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

Question 5

A curve that illustrates the relationship between the price of a good or service and the quantity that firms are willing to supply is called the:

Accepted Answer

A)  demand curve. 
B)  production possibilities frontier. 
C)  supply curve. 
D)  average cost curve. 
A)  demand curve. 
B)  production possibilities frontier. 
C)  supply curve. 
D)  average cost curve.

Question 6

. Use the figure Producer Surplus in the Market for Marzipan V. What will happen to producer surplus in this market if the price of marzipan increases by $3 per pound?
​
Figure: Producer Surplus in the Market for Marzipan V

Accepted Answer

A)  It increases by $6. 
B)  It increases by $12. 
C)  It increases by $8. 
D)  It increases by $20. 
A)  It increases by $6. 
B)  It increases by $12. 
C)  It increases by $8. 
D)  It increases by $20.

Question 7

The law of supply implies that supply curves are _____, and the law of demand implies that demand curves are ____.

Accepted Answer

A)  vertical; horizontal 
B)  upward sloping; downward sloping 
C)  horizontal; vertical 
D)  downward sloping; upward sloping 
A)  vertical; horizontal 
B)  upward sloping; downward sloping 
C)  horizontal; vertical 
D)  downward sloping; upward sloping

Question 8

How do you represent a seller's willingness to sell less at each price on a supply curve?

Accepted Answer

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

Question 9

. Use the figure Producer Surplus in the Market for Marzipan VI. What will happen to producer surplus in this market if the price of marzipan increases by $1 per pound?
​
Figure: Producer Surplus in the Market for Marzipan VI

Accepted Answer

A)  It increases by $3. 
B)  It increases by $2. 
C)  It decreases by $6. 
D)  It decreases by $5. 
A)  It increases by $3. 
B)  It increases by $2. 
C)  It decreases by $6. 
D)  It decreases by $5.

Question 10

The supply curve does NOT shift to the right when the:

Accepted Answer

A)  number of firms increases. 
B)  price of a storable good is expected to decrease in the future. 
C)  price of a complement of production increases. 
D)  cost of the factors of production increase. 
A)  number of firms increases. 
B)  price of a storable good is expected to decrease in the future. 
C)  price of a complement of production increases. 
D)  cost of the factors of production increase.

Question 11

Use the table Marginal Cost of Producing Candles. What is the change in producer surplus earned if the price increases from $1.75 to $2.00?
​

Accepted Answer

A)  Producer surplus increases by $0.75. 
B)  Producer surplus increases by $2.25. 
C)  Producer surplus increases by $2.00. 
D)  Producer surplus increases by $0.50. 
A)  Producer surplus increases by $0.75. 
B)  Producer surplus increases by $2.25. 
C)  Producer surplus increases by $2.00. 
D)  Producer surplus increases by $0.50.

Question 12

Use the table The Supply Schedule for Beaded Necklaces. What can be inferred about Oliver when the price of necklaces is $20?
​

Accepted Answer

A)  His opportunity cost of producing a fourth necklace is higher than $20. 
B)  His total costs of production are higher than $20. 
C)  His cost of producing a typical necklace when he produced four necklaces is higher than $20. 
D)  He has a net gain of producing a fourth necklace when the price is $20. 
A)  His opportunity cost of producing a fourth necklace is higher than $20. 
B)  His total costs of production are higher than $20. 
C)  His cost of producing a typical necklace when he produced four necklaces is higher than $20. 
D)  He has a net gain of producing a fourth necklace when the price is $20.

Question 13

Rodney sells gluten-free cupcakes at the Farmer's Market. His marginal cost for making another cupcake is $1, and he can sell his cupcakes for $3. An economist would say that each cupcake sold allows Rodney to earn:

Accepted Answer

A)  $3 of total profit. 
B)  $3 of producer surplus. 
C)  $2 of producer surplus. 
D)  $2 of total profit. 
A)  $3 of total profit. 
B)  $3 of producer surplus. 
C)  $2 of producer surplus. 
D)  $2 of total profit.

Question 14

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $4, how many mittens will Theo supply, and how much producer surplus will Theo earn?
​

Accepted Answer

A)  zero mittens supplied and $0 of producer surplus 
B)  three mittens supplied and $6 of producer surplus 
C)  four mittens supplied and $0 of producer surplus 
D)  four mittens supplied and $6 of producer surplus 
A)  zero mittens supplied and $0 of producer surplus 
B)  three mittens supplied and $6 of producer surplus 
C)  four mittens supplied and $0 of producer surplus 
D)  four mittens supplied and $6 of producer surplus

Question 15

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

Accepted Answer

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

Question 16

What does the word marginal mean in the term marginal cost?

Accepted Answer

A)  one more 
B)  average 
C)  best 
D)  lowest 
A)  one more 
B)  average 
C)  best 
D)  lowest

Question 17

Use the table The Supply Schedule for Beaded Necklaces. What is the lowest price that would create a market supply of at least seven necklaces?
​

Accepted Answer

A)  $15 
B)  $20 
C)  $25 
D)  $30 
A)  $15 
B)  $20 
C)  $25 
D)  $30

Question 18

Use the figure The Supply Curve. What caused the change from point L to point M in this graph?
​
Figure: The Supply Curve

Accepted Answer

A)  The price of this good increased. 
B)  The price of this good decreased. 
C)  The cost of resources used in producing this good decreased. 
D)  The number of sellers of this good increased. 
A)  The price of this good increased. 
B)  The price of this good decreased. 
C)  The cost of resources used in producing this good decreased. 
D)  The number of sellers of this good increased.

Use the table The Supply Schedule for Beaded Necklaces. What is the market supply at a price of $10?

What is a supply schedule?

Economists who study the market for rubber automobile tires have concluded that the supply curve has recently shifted to the right. What might have caused this?

Good L and good M are complements in production. If the price of good L decreases, then the quantity supplied of good L:

A curve that illustrates the relationship between the price of a good or service and the quantity that firms are willing to supply is called the:

. Use the figure Producer Surplus in the Market for Marzipan V. What will happen to producer surplus in this market if the price of marzipan increases by $3 per pound? Figure: Producer Surplus in the Market for Marzipan V

The law of supply implies that supply curves are _, and the law of demand implies that demand curves are .

How do you represent a seller's willingness to sell less at each price on a supply curve?

. Use the figure Producer Surplus in the Market for Marzipan VI. What will happen to producer surplus in this market if the price of marzipan increases by $1 per pound? Figure: Producer Surplus in the Market for Marzipan VI

The supply curve does NOT shift to the right when the:

Use the table Marginal Cost of Producing Candles. What is the change in producer surplus earned if the price increases from $1.75 to $2.00?

Use the table The Supply Schedule for Beaded Necklaces. What can be inferred about Oliver when the price of necklaces is $20?

Rodney sells gluten-free cupcakes at the Farmer's Market. His marginal cost for making another cupcake is $1, and he can sell his cupcakes for $3. An economist would say that each cupcake sold allows Rodney to earn:

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $4, how many mittens will Theo supply, and how much producer surplus will Theo earn?

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

What does the word marginal mean in the term marginal cost?

Use the table The Supply Schedule for Beaded Necklaces. What is the lowest price that would create a market supply of at least seven necklaces?

Use the figure The Supply Curve. What caused the change from point L to point M in this graph? Figure: The Supply Curve

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 The Supply Schedule for Beaded Necklaces. What is the market supply at a price of $10? ​

What is a supply schedule?

Economists who study the market for rubber automobile tires have concluded that the supply curve has recently shifted to the right. What might have caused this?

Good L and good M are complements in production. If the price of good L decreases, then the quantity supplied of good L:

A curve that illustrates the relationship between the price of a good or service and the quantity that firms are willing to supply is called the:

. Use the figure Producer Surplus in the Market for Marzipan V. What will happen to producer surplus in this market if the price of marzipan increases by $3 per pound? ​ Figure: Producer Surplus in the Market for Marzipan V

The law of supply implies that supply curves are _____, and the law of demand implies that demand curves are ____.

How do you represent a seller's willingness to sell less at each price on a supply curve?

. Use the figure Producer Surplus in the Market for Marzipan VI. What will happen to producer surplus in this market if the price of marzipan increases by $1 per pound? ​ Figure: Producer Surplus in the Market for Marzipan VI

The supply curve does NOT shift to the right when the:

Use the table Marginal Cost of Producing Candles. What is the change in producer surplus earned if the price increases from $1.75 to $2.00? ​

Use the table The Supply Schedule for Beaded Necklaces. What can be inferred about Oliver when the price of necklaces is $20? ​

Rodney sells gluten-free cupcakes at the Farmer's Market. His marginal cost for making another cupcake is $1, and he can sell his cupcakes for $3. An economist would say that each cupcake sold allows Rodney to earn:

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $4, how many mittens will Theo supply, and how much producer surplus will Theo earn? ​

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

What does the word marginal mean in the term marginal cost?

Use the table The Supply Schedule for Beaded Necklaces. What is the lowest price that would create a market supply of at least seven necklaces? ​

Use the figure The Supply Curve. What caused the change from point L to point M in this graph? ​ Figure: The Supply Curve

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 The Supply Schedule for Beaded Necklaces. What is the market supply at a price of $10?

. Use the figure Producer Surplus in the Market for Marzipan V. What will happen to producer surplus in this market if the price of marzipan increases by $3 per pound? Figure: Producer Surplus in the Market for Marzipan V

The law of supply implies that supply curves are _, and the law of demand implies that demand curves are .

. Use the figure Producer Surplus in the Market for Marzipan VI. What will happen to producer surplus in this market if the price of marzipan increases by $1 per pound? Figure: Producer Surplus in the Market for Marzipan VI

Use the table Marginal Cost of Producing Candles. What is the change in producer surplus earned if the price increases from $1.75 to $2.00?

Use the table The Supply Schedule for Beaded Necklaces. What can be inferred about Oliver when the price of necklaces is $20?

Use the table Marginal Cost of Producing Mittens. If mittens are sold at a price of $4, how many mittens will Theo supply, and how much producer surplus will Theo earn?

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

Use the table The Supply Schedule for Beaded Necklaces. What is the lowest price that would create a market supply of at least seven necklaces?

Use the figure The Supply Curve. What caused the change from point L to point M in this graph? Figure: The Supply Curve