ADAS Test 1-2 Mod

What is aggregate supply?

• The total amount of money in an economy
• The total supply of goods and services made in an economy at a certain price level
• The number of workers in an economy
• The total number of businesses in a country

How many main types of aggregate supply are there?

• One
• Two
• Three
• Four

What happens to production when prices go up in the short run?

• Production stays the same
• Production goes down
• Production increases
• Production stops completely

What does SRAS stand for?

• Strong Resource Allocation System
• Short-run Aggregate Supply
• Supply and Resource Analysis System
• Standard Resource Aggregate Supply

What happens to profits when prices go down?

• Profits get bigger
• Profits stay the same
• Profits get smaller
• Profits disappear completely

What affects aggregate supply?

• Weather only
• Technology only
• Prices of resources, government actions, and productivity
• The time of year

How can the government affect aggregate supply?

• Through taxes and rules only
• Through weather control
• Through controlling what people buy
• Through taxes, rules, and giving money to help businesses

What happens when technology gets better?

• Companies can make more things with the same resources
• Companies need more workers
• Companies make fewer things
• Companies close down

In the long run, what is most important for production?

• The weather
• The available resources
• The time of day
• The season

What happens when resource prices go up?

• Companies make more things
• Companies can sell more
• Companies make less because costs are higher
• Nothing changes