Economics 103 Worksheet With Answers - Fall 2012 Page 6
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36A) number of producers of CDs.
B) quantity of CDs that people plan to buy.
C) wage rate of workers who produce CDs.
D) price of a CD.
Answer: B
22) The "law of supply" states that, other things remaining the same, firms produce
A) more of a good the less it costs to produce it.
B) less of a good the more it costs to produce it.
C) more of a good the higher its price.
D) less of a good as the required resources become scarcer.
Answer: C
23) Which of the following explains why supply curves slope upward?
A) prices and income
B) increasing marginal cost
C) resources and technology
D) substitutes in production and complements in production
Answer: B
24) Which of the following is NOT held constant while moving along a supply curve?
A) expected future prices
B) the number of sellers
C) the price of the good itself
D) prices of factors of production
Answer: C
25) Auto workers negotiate a wage increase. How does this wage hike affect the supply
of cars?
A) It decreases the supply.
B) It increase the supply.
C) It has no effect.
D) There is not enough information to tell if the change increases, decreases, or has no
effect on the supply of cars
Answer: A
26) If a producer can use resources to produce either good A or good B, then A and B are
A) complements in production.
B) substitutes in production.
C) substitutes in consumption.
D) complements in consumption.
Answer: B
27) A bakery can produce either cakes or cookies. If the price of cookies rises, then
A) the supply curve of cake shifts leftward.
B) the supply curve of cake shifts rightward.
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