#1
What does the law of supply state in economics?
As the price of a good increases, the quantity demanded decreases.
As the price of a good increases, the quantity supplied increases.
As the price of a good decreases, the quantity demanded increases.
As the price of a good decreases, the quantity supplied decreases.
#2
What is the concept of equilibrium price in economics?
The price at which quantity demanded exceeds quantity supplied.
The price at which quantity supplied exceeds quantity demanded.
The price at which quantity demanded equals quantity supplied.
The price at which quantity demanded and quantity supplied are zero.
#3
What is the concept of producer surplus in economics?
The difference between the minimum price a seller is willing to accept and the price actually received.
The difference between the price paid by buyers and the maximum price they are willing to pay.
The difference between total revenue and total cost for producers.
The difference between the price at which a good is sold and the cost to produce it.
#4
In economics, what does the term 'market equilibrium' refer to?
The point where quantity demanded exceeds quantity supplied.
The point where quantity supplied exceeds quantity demanded.
The point where quantity demanded equals quantity supplied.
The point where both quantity demanded and quantity supplied are zero.
#5
Which of the following statements best describes the law of supply and demand?
As supply increases, demand decreases.
As demand increases, supply decreases.
As supply increases, demand increases.
As demand increases, supply increases.
#6
What is the concept of a subsidy in economics?
A tax imposed on producers
A payment made by the government to producers
A payment made by consumers to producers
A payment made by producers to consumers
#7
Which of the following statements accurately describes the law of demand?
As price increases, quantity demanded increases.
As price increases, quantity demanded decreases.
As price decreases, quantity demanded increases.
As price decreases, quantity demanded decreases.
#8
Which of the following factors can cause a shift in the supply curve?
Changes in consumer preferences
Changes in the price of related goods
Changes in technology
Changes in the price of complementary goods
#9
What is the concept of elasticity of supply in economics?
It measures the responsiveness of quantity supplied to changes in price.
It measures the responsiveness of quantity demanded to changes in price.
It measures the responsiveness of quantity supplied to changes in income.
It measures the responsiveness of quantity demanded to changes in income.
#10
Which of the following scenarios would lead to an increase in market supply?
A decrease in the price of inputs used in production
A decrease in the number of firms in the market
An increase in taxes on producers
An increase in the price of substitute goods
#11
What is the distinction between a change in supply and a change in quantity supplied in economics?
A change in supply refers to movement along the supply curve, while a change in quantity supplied refers to a shift of the entire curve.
A change in supply refers to a shift of the supply curve, while a change in quantity supplied refers to movement along the curve.
A change in supply occurs due to changes in price, while a change in quantity supplied occurs due to changes in factors other than price.
A change in supply occurs due to changes in factors other than price, while a change in quantity supplied occurs due to changes in price.
#12
What is the effect of a decrease in supply on equilibrium price and quantity in a market?
Equilibrium price decreases; equilibrium quantity increases.
Equilibrium price decreases; equilibrium quantity decreases.
Equilibrium price increases; equilibrium quantity increases.
Equilibrium price increases; equilibrium quantity decreases.
#13
What does the law of diminishing returns state in relation to production?
As more units of a variable input are added to fixed inputs, the additional output produced eventually decreases.
As more units of a variable input are added to fixed inputs, the additional output produced remains constant.
As more units of a variable input are added to fixed inputs, the additional output produced increases at an increasing rate.
As more units of a variable input are added to fixed inputs, the additional output produced increases at a decreasing rate.
#14
Which of the following would likely cause a shift to the left in the supply curve for a product?
An increase in the price of inputs used in production
A decrease in taxes on producers
An improvement in production technology
An increase in consumer preferences for the product
#15
In economics, what is a perfectly elastic supply curve?
A supply curve that is vertical
A supply curve that is horizontal
A supply curve that is upward-sloping
A supply curve that is downward-sloping
#16
In economics, what is the concept of a perfectly inelastic supply curve?
A supply curve that is vertical
A supply curve that is horizontal
A supply curve that is upward-sloping
A supply curve that is downward-sloping
#17
What is the concept of cross-price elasticity of demand?
It measures the responsiveness of quantity demanded of one good to changes in the price of another good.
It measures the responsiveness of quantity supplied of one good to changes in the price of another good.
It measures the responsiveness of quantity demanded to changes in income.
It measures the responsiveness of quantity supplied to changes in income.