Topic 3.4-3.6 Quiz

Define supply.

• The amount of a product available at a given price

• The demand for a product at a given price

• The cost of producing a product

• The quality of a product

The law of supply says producers offer more of a good or service as its price...

• Decreases

• Increases

• Stays the same

• Fluctuates

Jimin runs a lemonade stand and notices that he can make more profit on lemonade as its price...

• Decreases

• Increases

• Stays the same

• Fluctuates

What do producers think about when deciding how to maximize profits?

• Increasing prices

• Reducing quality

• Minimizing costs

• Expanding the market

Define marginal product of labor.

• The total output produced by all workers

• The additional output from hiring one more worker

• The average output per worker

• The cost of hiring an additional worker

What is the definition of diminishing marginal returns?

• An increase in output with each additional unit of input

• A decrease in output with each additional unit of input

• A decrease in the rate of output increase with each additional unit of input

• No change in output with each additional unit of input

What is a variable cost?

• A cost that remains constant regardless of output

• A cost that changes with the level of output

• A cost that decreases as output increases

• A cost that increases as output decreases

To find the level of output with the highest profit, what do we look for?

• The point where total cost is minimized

• The point where marginal cost equals marginal revenue

• The point where fixed cost is minimized

• The point where variable cost is minimized

How can advances in technology affect supply?

• Decrease supply

• Increase supply

• No effect on supply

• Increase demand

What is an excise tax?

• A tax on imports

• A tax on exports

• A tax on the production or sale of a good

• A subsidy for businesses