#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
What is the law of supply?
As price increases, supply increases
ExplanationThe law of supply states that as price rises, the quantity supplied increases.
#9
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.
#10
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.
#11
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.
#12
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.
#13
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.