#1
Which of the following is NOT a factor influencing supply?
Demand for the product
ExplanationDemand and supply are independent factors.
#2
If the price of raw materials increases, what is likely to happen to the supply?
Decrease
ExplanationHigher costs lead to decreased supply.
#3
Which of the following is NOT a factor affecting production costs?
Government subsidies
ExplanationSubsidies reduce production costs.
#4
What is the relationship between price and quantity supplied according to the law of supply?
Positive
ExplanationHigher prices incentivize higher supply.
#5
What happens to the supply curve when producers expect higher prices in the future?
Shifts to the right
ExplanationExpectation of higher prices increases current supply.
#6
Which of the following is a determinant of supply elasticity?
Time horizon
ExplanationLonger time allows for more adjustments in supply.
#7
In the short run, if production capacity is fixed, what happens when demand increases?
Supply increases proportionally
ExplanationLimited capacity means proportional increase in supply.
#8
What effect does an increase in taxes on producers have on supply?
Decrease
ExplanationHigher taxes decrease profits, hence supply.
#9
What happens to supply if there is a decrease in the number of producers in the market?
Decrease
ExplanationLess competition leads to reduced supply.
#10
Which of the following is an example of a factor influencing supply in the long run?
Technology advancements
ExplanationLong-run adjustments often involve technological improvements.
#11
Which of the following is an example of a supply determinant related to technology?
Advancements in production methods
ExplanationTechnological advancements enhance supply efficiency.
#12
Which of the following is an example of a supply determinant related to government policies?
Taxes and regulations
ExplanationGovernment policies directly affect production costs and supply.
#13
What effect does an increase in the price of resources used in production have on supply?
Supply decreases
ExplanationHigher input costs reduce profitability and hence supply.
#14
Which of the following is a factor that can lead to a decrease in supply?
Increase in production costs
ExplanationHigher production costs reduce profitability and hence supply.