#1
What does the law of supply state?
As the price of a good increases, the quantity supplied decreases.
As the price of a good increases, the quantity supplied increases.
As the price of a good decreases, the quantity supplied decreases.
As the price of a good decreases, the quantity supplied increases.
#2
Which of the following factors does NOT influence supply?
Technology
Taxes
Consumer preferences
Cost of production
#3
What happens to the supply curve if there is an improvement in production technology?
It shifts to the left.
It shifts to the right.
It remains unchanged.
It becomes steeper.
#4
What does the term 'market equilibrium' refer to?
A situation where demand exceeds supply.
A situation where supply exceeds demand.
A situation where quantity demanded equals quantity supplied.
A situation where quantity demanded is less than quantity supplied.
#5
What is the slope of the supply curve?
Positive
Negative
Zero
Undefined
#6
What is the primary goal of a firm in a competitive market?
Maximizing total revenue
Maximizing total cost
Maximizing profit
Maximizing market share
#7
What is the formula for calculating total revenue?
Total Revenue = Price × Quantity Demanded
Total Revenue = Price × Quantity Supplied
Total Revenue = Quantity Demanded / Price
Total Revenue = Quantity Supplied / Price
#8
What is the difference between a movement along the supply curve and a shift in the supply curve?
A movement occurs due to a change in price, while a shift occurs due to a change in factors other than price.
A movement occurs due to a change in factors other than price, while a shift occurs due to a change in price.
There is no difference.
A movement occurs in the long run, while a shift occurs in the short run.
#9
What is the concept of elasticity of supply?
It measures the responsiveness of quantity supplied to changes in price.
It measures the responsiveness of quantity supplied to changes in income.
It measures the responsiveness of quantity supplied to changes in demand.
It measures the responsiveness of quantity supplied to changes in consumer preferences.
#10
What is the main determinant of the price elasticity of supply?
The availability of substitutes
The time period under consideration
Consumer income
Government regulations
#11
Which of the following is a determinant of market supply but not individual supply?
Cost of production
Price of the good
Number of firms in the market
Technology
#12
What is the difference between a change in supply and a change in quantity supplied?
A change in supply is caused by a change in price, while a change in quantity supplied is caused by a change in other factors.
A change in supply is caused by a change in other factors, while a change in quantity supplied is caused by a change in price.
There is no difference.
A change in supply occurs in the short run, while a change in quantity supplied occurs in the long run.
#13
What does the concept of producer surplus represent?
The difference between the minimum price a producer is willing to accept and the market price.
The difference between the maximum price a consumer is willing to pay and the market price.
The difference between the market price and the cost of production.
The difference between the total revenue and the variable costs.
#14
Which of the following is a characteristic of a market in long-run equilibrium?
Price is below equilibrium.
Quantity supplied is greater than quantity demanded.
Economic profits are zero.
Demand exceeds supply.
#15
Which of the following is an example of a perfectly elastic supply?
Gasoline
Rare artwork
Unique handcrafted furniture
Labor in a perfectly competitive market
#16
What is the relationship between price and quantity supplied in a perfectly inelastic supply?
Price changes while quantity supplied remains constant.
Quantity supplied changes while price remains constant.
Both price and quantity supplied change proportionally.
Neither price nor quantity supplied changes.