Factors Influencing Supply Quiz

Test your knowledge on factors influencing supply in microeconomics. Identify determinants, shifts, and impacts on supply.

Practice Learn Test

Which of the following is NOT a factor influencing supply?

Cost of production

Government policies

Consumer preferences

Demand

What effect does an increase in the cost of raw materials have on supply?

Decreases supply

Increases supply

No effect on supply

Increases demand

In economics, what does the term 'technology' refer to?

The use of computers and the internet

The application of scientific knowledge to production processes

The study of machinery and equipment

The development of new software programs

Which of the following is an example of a determinant of supply?

Price of complementary goods

Number of buyers

Income of consumers

Technological advancements

What role do expectations play in determining supply?

Expectations have no impact on supply

Expectations can affect the quantity of goods supplied

Expectations only affect demand

Expectations influence only the price of goods

Which of the following is NOT a factor affecting the cost of production?

Technology

Input prices

Consumer preferences

Government regulations

How does a subsidy affect supply?

Decreases supply

Increases supply

Has no effect on supply

Decreases demand

What is the law of supply?

As price increases, supply decreases

As price increases, supply increases

As price decreases, supply decreases

As price decreases, supply increases

What is the primary reason for a rightward shift of the supply curve?

Decrease in production costs

Increase in demand

Increase in the number of sellers

Government intervention

#10

In the context of supply, what does elasticity refer to?

The responsiveness of quantity supplied to a change in price

The responsiveness of quantity demanded to a change in income

The measure of government intervention in markets

The measure of consumer satisfaction

#11

What is the term used to describe the situation when a good is produced using the least-cost method?

Allocative efficiency

Productive efficiency

Elasticity

Marginal cost

#12

Which of the following would cause a leftward shift in the supply curve?

Increase in production costs

Decrease in taxes

Expansion of market size

Subsidies to producers

#13

In the context of supply, what does the term 'economies of scale' refer to?

Decrease in production costs due to increased output

Increase in production costs due to decreased output

Stabilization of production costs

No change in production costs