#1
Which of the following is NOT a factor influencing supply?
Demand
ExplanationDemand does not directly influence supply.
#2
What effect does an increase in the cost of raw materials have on supply?
Decreases supply
ExplanationHigher costs of raw materials lead to decreased supply.
#3
In economics, what does the term 'technology' refer to?
The application of scientific knowledge to production processes
ExplanationTechnology involves applying scientific knowledge to improve production processes.
#4
Which of the following is an example of a determinant of supply?
Technological advancements
ExplanationTechnological advancements directly affect the quantity supplied.
#5
What role do expectations play in determining supply?
Expectations can affect the quantity of goods supplied
ExplanationExpectations about future prices or conditions can influence how much producers are willing to supply.
#6
Which of the following is NOT a factor affecting the cost of production?
Consumer preferences
ExplanationConsumer preferences do not directly impact production costs.
#7
How does a subsidy affect supply?
Increases supply
ExplanationSubsidies provide financial assistance to producers, leading to an increase in supply.
#8
Which of the following is a determinant of supply?
Number of firms in the market
ExplanationThe number of firms in the market affects the total quantity supplied.
#9
What happens to the supply curve when there is an improvement in production technology?
Shifts rightward
ExplanationImproved production technology increases supply, shifting the curve to the right.
#10
Which of the following is NOT a factor affecting the supply of agricultural products?
Market demand
ExplanationMarket demand does not directly impact the supply of agricultural products.
#11
What effect does an increase in the price of a complementary good have on supply?
Increases supply
ExplanationHigher prices of complementary goods encourage producers to supply more of the main good.
#12
Which of the following is a non-price determinant of supply?
Technology
ExplanationTechnology is a factor affecting supply that is not influenced by price.
#13
What is the primary goal of a firm regarding its supply decisions?
Maximize profit
ExplanationFirms aim to maximize profits through their supply decisions.
#14
What impact does an increase in the wages of workers have on supply?
Decreases supply
ExplanationHigher wages increase production costs, leading to a decrease in supply.
#15
Which of the following is a supply determinant related to the availability of resources?
Natural disasters
ExplanationNatural disasters can disrupt the availability of resources, affecting supply.
#16
How does a decrease in the number of sellers affect supply?
Decreases supply
ExplanationFewer sellers mean less total quantity supplied, leading to a decrease in supply.
#17
What happens to supply when there is an increase in the price of substitute goods?
Decreases supply
ExplanationHigher prices of substitute goods lead consumers to switch, decreasing demand for the original good.
#18
What is the law of supply?
As price increases, supply increases
ExplanationThe law of supply states that as price rises, the quantity supplied increases.
#19
What is the primary reason for a rightward shift of the supply curve?
Decrease in production costs
ExplanationA decrease in production costs leads to an increase in the quantity supplied, shifting the supply curve to the right.
#20
In the context of supply, what does elasticity refer to?
The responsiveness of quantity supplied to a change in price
ExplanationElasticity measures how much quantity supplied changes in response to changes in price.
#21
What is the term used to describe the situation when a good is produced using the least-cost method?
Productive efficiency
ExplanationProducing goods using the least-cost method indicates productive efficiency.
#22
Which of the following would cause a leftward shift in the supply curve?
Increase in production costs
ExplanationHigher production costs lead to a decrease in supply, shifting the curve to the left.
#23
In the context of supply, what does the term 'economies of scale' refer to?
Decrease in production costs due to increased output
ExplanationEconomies of scale occur when increased production lowers average costs.
#24
Which of the following statements is true regarding the law of diminishing returns?
It states that as more units of a variable input are added to fixed inputs, the additional output will eventually decrease
ExplanationThe law of diminishing returns explains the eventual decrease in output as more units of a variable input are added to fixed inputs.
#25
In economics, what does the term 'ceteris paribus' mean in relation to supply?
All other factors are constant except the one being studied
ExplanationCeteris paribus means holding all other factors constant except the one under consideration when analyzing supply.