Question : 4.2   Supply 1) To be part of the supply for a : 1226405

4.2   Supply

1) To be part of the supply for a good, a producer must be

A) only able to supply the good.

B) only willing to supply the good.

C) both able and willing to supply the good.

D) both able and willing to supply the good, and have already identified a buyer.

E) both able and willing to supply the good, and have already sold the good.

2) The quantity supplied of a good or service is the

A) list of all quantities at different prices, as illustrated by a supply schedule and a supply curve.

B) list of all quantities at different prices, as illustrated by a demand schedule and a demand curve.

C) one quantity produced at a variety of prices.

D) quantity produced at one price.

3) The law of supply states that, other things remaining the same,

A) demand increases when supply increases.

B) if the price of a good increases, firms buy less of it.

C) if the price of a good increases, the quantity supplied increases.

D) as people’s income increase, the supply of goods increases.

E) if the price of a good increases, the supply increases.

4) The law of supply states that other things remaining the same, a decrease in the price of a kayak leads to

A) a decrease in the supply of kayaks.

B) a decrease in the quantity of kayaks supplied.

C) an increase in the supply of kayaks.

D) an increase in the quantity of kayaks supplied.

E) an increase in the supply of kayaks and a decrease in the quantity of kayaks supplied.

5) Which of the following helps explain why the law of supply exists?

A) Larger outputs result in lower costs of production.

B) The law of increasing opportunity cost.

C) The costs of production remain constant throughout all levels of output.

D) Sellers realize that if the price increases, they make larger profits and do not need to change their production.

E) The law of demand.

6) The law of supply reflects the fact that

A) people buy more of a good when its price falls.

B) suppliers have an incentive to use their resources in the way that brings the biggest return.

C) higher prices are more attractive to consumers because they signal a higher quality product.

D) businesses can sell more goods at lower prices.

E) the demand curve is downward sloping.

7) The supply schedule

A) shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans remain the same.

B) is a curve showing the relationship between the amount the sellers are willing and able to sell and the price of that good when all relevant factors change.

C) shows one quantity at one price.

D) is the schedule that suppliers have to keep or else they will be late.

E) shows the relationship between the quantity supplied and the price of a good when all other influences on selling plans change.

8) A supply curve

A) slopes downward.

B) slopes upward.

C) is a graph of the relationship between quantity supplied of a good and its price.

D) Both answers B and C are correct.

E) Both answers A and C are correct.

9) Which of the following results in a movement upward along the supply curve for movies in theaters?

A) an increase in the price of movie tickets

B) a decrease in the price of movie tickets

C) a decrease in the price of downloaded movies

D) a decrease in movie star salaries

E) an increase in the number of theaters

10) If the price of iPods decreases,

A) there will be a movement down along the supply curve for iPods.

B) there will be a rightward shift in the iPod supply curve.

C) there will be a movement up along the supply curve for iPods.

D) the supply curve for iPods shifts leftward.

E) there has been a decrease in the price of iTunes songs.