Question
12. A shift in supply assumes _____. a. an exception to the law of supply b. that other things besides product price are constant c.
12. A shift in supply assumes _____.
- a. an exception to the law of supply
- b. that other things besides product price are constant
- c. that other things besides product price are varying
- d. that resource supplies are declining
Topic covered in 2.2 Report a problem
13. An increase in resource prices (input costs) would tend to cause an increase in the supply of the product.
- a. True
- b. False
Topic covered in 2.2 Report a problem
14. Which of these is, by definition, least likely to cause a shift in supply of a product?
- a. Production technology changes.
- b. Resource costs (input prices) change.
- c. Expected future price of the good changes.
- d. A change in the current price of the good itself.
Topic covered in 2.2 Report a problem
15. How do economists define a market equilibrium? A state of affairs where _____.
- a. Government regulations require buyers and sellers to be satisfied
- b. Scarcity is eliminated through the effects of constantly increasing supply.
- c. Buyers plans to buy and sellers plans to sell match at a particular price
- d. All hopes of buyers and sellers are satisfied
Topic covered in 2.3 Report a problem
16. Rising business inventories are a first sign of a surplus in a market.
- a. True
- b. False
Topic covered in 2.3 Report a problem
17. A surplus is defined as an excess of quantity supplied.
- a. True
- b. False
Topic covered in 2.3 Report a problem
18. A shift in supply, other things being equal, causes a shift in demand.
- a. True
- b. False
Topic covered in 2.3 Report a problem
19. A decrease in demand will lead to a lower price and a lower quantity supplied.
- a. True
- b. False
Topic covered in 2.3 Report a problem
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