Chapter 5 supply test

In a free-enterprise system, the key factor affecting the quantity supplied is?

• rate of production.

• price.

• profits

• cost of production.

The relationship between a product’s price and the quantity supplied is?

• inverse.

• direct.

• proportional

• complicated.

After producers have paid all their costs, the amount of money remaining is called?

• profit

• revenue.

• depreciation.

• overhead.

The quantity of a good or service that producers are willing to supply at various market prices can be listed on a supply?

• graph.

• schedule.

• curve.

• line.

If, after the passage of time, the determinants of supply cause an increase in the supply of a product, the supply curve for that product shifts?

• downward.

• upward.

• to the right.

• to the left.

If a new tax is levied on the producers of widgets, the supply curve for widgets will shift?

• downward

• upward

• to the right.

• to the left.

If new pollution controls are imposed on companies that make wrenches, the supply of wrenches will?

• increase

• decrease.

• fluctuate.

• stabilize.

If the price of the corn falls, the supply of soybeans, a related good, will?

• increase

• decrease.

• fluctuate

• stabilize.

Depreciation is an example of?

• marginal costs

• variable costs.

• fixed costs.

• total costs.

Raw materials are an example of?

• marginal costs.

• variable costs

• fixed costs.

• total costs