202 Unify In . 2571NAG om 3/11, 12) 7. Firms that want to maximize profits produce a. In Stage I of production. b. In Stage II of production. . In Stage III of production. d. As much as they possibly can. 8. The level of profit-maximizing output is reached when marginal cost is a. Double marginal revenue. b. Less than marginal revenue. c. One-half of marginal revenue. d. Equal to marginal revenue. 9. If producers expect higher prices in the future, they may a. Withhold some supply. b. Hold a special sale. c. Increase output. d. Request government subsides. 10. Price ceilings that are artificially low are likely to create a. A price floor b. A surplus c. An equilibrium d. A shortage 11. What is meant by the phrase "markets talk"? a. Markets changes are written about in newspapers and magazines. b. Government officials base decisions on the stock market c. Business people rely on good communication to conduct business d. Markets reflect the thought and feelings of buyers and sellers 12. Prices are neutral when they a. Do not favor the producer or consumer b. do not change c. are seasonal d. are flexible and elastic 13. Price competition is a characteristic of a love bloft a. market economy b. traditional society c. command economy aloustoohowbond d. corporate state borg to eborbon Ianoifiben ben pubong tujhs of matooil 14. At any given price, a surplus occurs when a. the quantity demanded is more than the quantity supplied b. the quantity demanded is the same as the quantity supplied c. the quantity supplied is less than the quantity demanded d. the quantity supplied is greater than the quantity demanded1. The basic decision for a supplier is a. How much to produce without regard to demand. b. The amount to offer for sale at various prices. c. The willingness of consumers to purchase. d. The ability of consumers to purchase. 2. The factor that would cause the supply curve to shift to the right is a. Higher taxes. b. A decrease is government subsides. c. And increase in the cost of inputs. d. An increase in the number of sellers. 3. Demand is based on consumer purchase, whereas supply is based on a. The ability to purchase. b. The willingness to purchase. c. Producers offering products for sale. d. Offering a wide range of prices. 4. If the price of a product increases modestly, and if producers respond with a substantial increase in output, then supply is a. Elastic. 19, Costs b. Fixed. cle c. Unit elastic. d. Inelastic. 5. If the price of a product falls, producers will generally a. Offer less for sale. b. Increase input. 20 Econo c. Offer more for sale. d. Hold a clearance sale. LET 6. In a market economy, the producer has a. No control of production levels. b. Always followed traditional methods of production. c. The freedom to adjust production. d. To fulfill government quotas of production. Igive a song novig yas JA .P. brusmob yunaup ord . babramsb wilmaup srifad baileque vlunaup self . que viitaup erll butheran High School of Orange County nit 2 Exam Client In. aulhe lang eek from 908! 21. Listing of quantities that would be offered for sale at all possible prices that could prevail in a market a. law of supply b. supply schedule c. demand schedule d. law of demand 22. A period of production that allows producers to change only the amount of variable inputs a. marginal time b. short time c. short run d. variable time 23. A period of production that allows producers to change the amount of all inputs. a. marginal run b. long run c. short run d. Run DMC bollen of Use the following terms to complete the matching a. Demand curve b. Demand schedule c. Microeconomics d. Demand e. Law of demand bolles sis esgratis 24 The desire, ability, and willingness to buy a product. 25. A listing that shows the quantity demanded at all prices that might prevail in the market at a given time. 26. Rule stating that more will be demanded at lower prices and less at higher prices. sologong oldni 27 Graph showing the quantity demanded at each and every possible price that might prevail in the market at a given time. 28 Branch of economy theory that deals with behavior and decision making by small units such as individuals and firms.School Name: Lutheran High School of Orange County 15. Prices serve as a link between consumer and a. natural resources b. producers c. government d. the factors of production 16 One advantage of a free market is a. that everyone has excess income b. price flexibility c. that food and housing are very low in cost d. the limited number of alternative products 17. Relatively small changes in supply (both increases and decreases) will have the greatest impact on price when a. the use of the product can be postponed b. demand is elastic units c. there are adequate substitutes for the product d. demand is inelastic 18. Overhead costs such as salaries to executives, depreciation on capital goods are called a. marginal cost b. variable cost c. fixed cost d. true Cost 19. Costs that change when the business rate of output or operation including the cost of electric power or freight charges are called. To wall s a. Marginal cost b. Variable Shiesb offT c. Fixed cost d. Actual Cost 20. Economic principle stating that the quantity supplied varies direct with its price. OS a. law of supply ed b. law of Variable proportions c. theory of production d. supply one does in bebromob punaup odd guiworte dgerd comit navig s is fordism odd ni lisvenq idgiant d drew alsob tard viosdi vmonoos to donmill ermil bre elecbivibal es dove elimu lloreSchool Name: Lutheran High School of Orange County 15. Prices serve as a link between consumer and a. natural resources b. producers c. government d. the factors of production 16 One advantage of a free market is a. that everyone has excess income b. price flexibility c. that food and housing are very low in cost d. the limited number of alternative products 17. Relatively small changes in supply (both increases and decreases) will have the greatest impact on price when a. the use of the product can be postponed b. demand is elastic units c. there are adequate substitutes for the product d. demand is inelastic 18. Overhead costs such as salaries to executives, depreciation on capital goods are called a. marginal cost b. variable cost c. fixed cost d. true Cost 19. Costs that change when the business rate of output or operation including the cost of electric power or freight charges are called. To wall s a. Marginal cost b. Variable Shiesb offT c. Fixed cost d. Actual Cost 20. Economic principle stating that the quantity supplied varies direct with its price. OS a. law of supply ed b. law of Variable proportions c. theory of production d. supply one does in bebromob punaup odd guiworte dgerd comit navig s is fordism odd ni lisvenq idgiant d drew alsob tard viosdi vmonoos to donmill ermil bre elecbivibal es dove elimu llore