Chapter 4: Section 1 Quiz

10 Questions | Total Attempts: 40

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Chapter 4: Section 1 Quiz

The quiz will be 10 questions over section 1 of chapter 4. Each question will be worth 2 points for a combined total of 20 points.


Questions and Answers
  • 1. 
    Explain one cost of production in the process of making the Ford Mustang.
  • 2. 
    The picture on the first page of chapter 4 shows two ladies holding a container of garden vegatables, which helps describe the business that they are in.
    • A. 

      True

    • B. 

      False

  • 3. 
    Why would the prices for sports memorabilia increase in price during a season in which that team was successful?  Check all that apply.
    • A. 

      The buyers know that the price of the items will decline.

    • B. 

      If a team is successful their proud fans want to display their items to the public.

    • C. 

      Rival fans will buy up some of the items knowing that they should go up in price.

    • D. 

      The supply of these items is low and they will be expensive.

    • E. 

      The demand for these items is high and they will be available for sale. The sale price could be expensive.

  • 4. 
    What are 3 conditions that must be meant to satisfy the inelastic supply principle.  Production requires a great deal of:
    • A. 

      Time, money, and human capital

    • B. 

      Money, raw materials, and investments

    • C. 

      Time, money, and resources that are not readily available

    • D. 

      None of the above

  • 5. 
    Fuzzy dice, pet rocks, and nose rings are all examples of ______________, or consumer trends.
  • 6. 
    A perfectly inelastic supply curve in completely horizontal ( left to right across the graph paper)
    • A. 

      True

    • B. 

      False

  • 7. 
    In the supply schedule given below, which choice or choices would companies producing the product of toothpaste, most likely want to chose? http://www.google.com/imgres?imgurl=http://www.amosweb.com/images/MkSp31.gif&imgrefurl=http://www.amosweb.com/cgi-bin/awb_nav.pl?s%3Dwpd%26c%3Ddsp%26k%3Dsupply%2Bschedule&h=203&w=218&sz=4&tbnid=eLXzUZ1Pvb-qFM:&tbnh=90&tbnw=97&zoom=1&usg=__QDBxxlE7luXS9iKLV5AaQ1T0n8Q=&docid=dx08352Y8D0nZM&sa=X&ei=jwOPUK2FJ-qY2wWTsYGgAw&ved=0CEMQ9QEwBQ&dur=6
    • A. 

      Choice A

    • B. 

      Choice B

    • C. 

      Choice C

    • D. 

      Choice J

    • E. 

      Choice I

    • F. 

      Choice H

  • 8. 
    A supply curve plots on a graph the information from a demand schedule?
    • A. 

      True

    • B. 

      False

  • 9. 
    The law of supply states that producers supply more goods and services when they can sell them at ________________ prices and fewer goods and services when they must sell them at  lower prices.
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