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Economics Sample Quiz Questions
____13. Supply is defined as
a. the willingness and
b. the willingness and
citizens
c. the willingness and
sale
d. the willingness and
ability of consumers to purchase goods and services
ability of the government to offer protections to
ability of producers to offer goods and services for
ability of laborers to work for producers for pay
____14. According to the law of supply, when prices increases,
a. demand increases
b. quantity demanded increases
c. supply increases
d. quantity supplied increases
____15. Economists use a supply curve to
a. show the law of supply in chart form
b. show the law of supply in graph form
c. show the law of supply in table form
d. show the law of supply in a written description
____16. The change in total output that results from hiring one additional worker is called
a. marginal cost
b. marginal labor
c. marginal product
d. marginal revenue
____17. The additional expense of producing one more unit of a product is called
a. marginal cost
b. marginal labor
c. marginal product
d. marginal revenue
____18. Business owners decide on the right number of workers by analyzing data to learn
when
a. diminishing returns change to increasing returns
b. profit-maximizing output is reached
c. total cost equals total revenue
d. variable costs get too high
____19. The difference between fixed costs and variable costs is that
a. fixed costs depend on outside forces; variable costs depend on internal
forces
b. fixed costs remain the same; variable costs are determined by fixed
costs
c. fixed costs remain the same; variable costs depend on how much is
produced
d. fixed costs are always low; variable costs are always high
____20. Marginal revenue equals
a. marginal cost
b. product price
c. total cost
d. total profit
____21. Profit-maximizing output is the point at which
a. increasing returns change to diminishing returns
b. variable costs change to fixed costs
c. marginal revenue and total revenue are equal
d. marginal revenue and marginal cost are equal
____22. The amount of goods and services that a person can produce in a given time is
called
a. labor input
b. labor intensive
c. labor output
d. labor productivity
____23. The government uses excise taxes to
a. decrease the supply of products it doesn't want people to use
b. increase the supply of products it does want people to use
c. encourage businesses to invest in new technology
d. discourage businesses from importing too many resources
____24. The ease of changing production to respond to price change determines
a. how regulated a business is
b. how expensive a product is
c. how elastic a supply is
d. how much fixed costs are
____ 5. When there is a shortage, producers raise prices in an attempt to
a. separate the quantity supplied and demanded
b. raise the quantity demanded
c. equalize the quantity supplied and demanded
d. lower the quantity supplied
____ 6. Suppliers often reduce prices because they
a. have a shortage of products to sell
b. have a surplus of products to sell
c. want to decrease consumer demand
d. want to increase the product supply
____ 7. Supply can be changed by
a. equilibrium
b. income
c. input costs
d. substitutes