Exploring Week 24 Economics Concepts

What happens to the quantity supplied when prices increase?

• It fluctuates unpredictably

• It increases

• It remains unchanged

• It decreases

What does a supply schedule show?

• The relationship between demand and price

• The relationship between price and quantity supplied

• The total cost of production

• The profit margin of a product

What is the key factor determining whether the supply of a good will be elastic or inelastic?

• Demand

• Time

• Price

• Quantity

What are fixed costs?

• The cost of labor

• Costs that vary depending on production levels

• The cost of raw materials

• Costs that remain constant regardless of production levels

What is marginal cost?

• The cost of all variable inputs

• The cost of all fixed inputs

• The total cost of production

• The cost of producing one more unit of a good

When should a firm shut down production in the short term?

• When fixed costs exceed variable costs

• When total revenue is less than total cost

• When marginal cost is greater than marginal revenue

• When the price of the product increases

How do subsidies affect supply?

• They decrease supply

• They make supply inelastic

• They have no effect on supply

• They increase supply

What is the effect of an excise tax on supply?

• Increases supply

• Decreases supply

• Makes supply more elastic

• Has no effect on supply

What happens to the supply curve when the cost of inputs increases?

• Shifts to the right

• Remains unchanged

• Becomes more elastic

• Shifts to the left

What influences a firm's decision on where to locate its production facilities?

• The availability of raw materials only

• The price of the final product

• The cost of labor only

• The cost of transportation