Which of the following is an example of a good? a) Haircut b) Car c) Insurance policy d) Legal advice

Which of the following is an example of a service? a) Television b) Restaurant meal c) Laptop d) Clothing

Goods are tangible items that can be: a) Seen and touched b) Heard and smelled c) Tasted and smelled d) Heard and tasted

Services are intangible activities that are: a) Produced and consumed simultaneously b) Produced and consumed at different times c) Produced but not consumed d) Consumed but not produced

Which of the following is a characteristic of supply? a) It is determined by demand b) It is unlimited c) It is fixed d) It can be influenced by price

The law of supply states that as the price of a good or service increases: a) The quantity supplied decreases b) The quantity supplied increases c) The quantity demanded decreases d) The quantity demanded increases

Which of the following is a determinant of supply? a) Consumer income b) Consumer tastes and preferences c) Price of related goods d) Cost of production

Elastic supply means that: a) A small change in price leads to a large change in quantity supplied b) A large change in price leads to a small change in quantity supplied c) Price and quantity supplied are unrelated d) Supply is perfectly inelastic

Inelastic supply means that: a) A small change in price leads to a large change in quantity supplied b) A large change in price leads to a small change in quantity supplied c) Price and quantity supplied are unrelated d) Supply is perfectly elastic

Which of the following is an example of a fixed cost for a business? a) Wages for employees b) Rent for a building c) Cost of raw materials d) Advertising expenses

Which of the following is an example of a variable cost for a business? a) Insurance premiums b) Property taxes c) Utilities d) Salaries

The supply curve is upward sloping because: a) As price increases, quantity supplied decreases b) As price increases, quantity supplied increases c) As price decreases, quantity supplied decreases d) As price decreases, quantity supplied increases

Which of the following is a factor that can shift the supply curve? a) Changes in consumer income b) Changes in consumer tastes and preferences c) Changes in the price of related goods d) Changes in technology

The equilibrium price is determined by: a) Supply only b) Demand only c) Both supply and demand d) Neither supply nor demand

If the quantity supplied is greater than the quantity demanded, there is: a) A shortage b) A surplus c) Equilibrium d) No impact on the market

If the price of a good increases, we would expect: a) Quantity supplied to increase and quantity demanded to decrease b) Quantity supplied to decrease and quantity demanded to increase c) Quantity supplied and quantity demanded to both increase d) Quantity supplied and quantity demanded to both decrease

Which of the following is an example of a substitute good? a) Coffee and tea b) Apples and oranges c) Butter and bread d) Milk and cereal

Which of the following is an example of a complementary good? a) Coffee and tea b) Apples and oranges c) Butter and bread d) Milk and cereal

The price elasticity of supply measures: a) The responsiveness of quantity supplied to changes in price b) The responsiveness of quantity demanded to changes in price c) The responsiveness of quantity supplied to changes in income d) The responsiveness of quantity demanded to changes in income

Which of the following is a determinant of price elasticity of supply? a) Availability of substitutes b) Time period under consideration c) Consumer income d) Consumer tastes and preferences