Supply revision 2

what does a market supply curve show?

• the proportion of total output produced by different firms in the industry

• proportion of total output sold

• the relationship between total quantity supplied and demand for the product

• the relationship between the total quantity supplied and the price of the product

How could an increase in supply be illustrated?

• a movement up the supply curve

• a movement down the supply curve

• a shift to the left of the supply curve

• a shift to the right of the supply curve

what would cause an increase in the supply of milk?

• a increase in the price of cattle feed

• an increase in the wages paid to farm workers

• the introduction of subsidy to cattle farmers

• the outbreak of a disease affecting cows

The supply curve of cars in china shifts to the right. What is the most likely cause of this change?

• an increase in indirect tax on petrol on cars

• an increase in the price of cars in china

• an increase in the wages of Chinese car workers

• a new subsidy given to Chinese car manufacturer

As incomes have risen in India, cinema attendance has increased.

How would this change be shown on demand curve?

• Movement upward on demand curve

• Movement downward on demand curve

• demand curve shifts to the right

• demand curve shifts to the left

In recent years the price of crude oil in the world market has fallen dramatically. One cause has been the increase in oil obtained by the new extraction process of fracking.

How is this shown on the demand and supply curve of the crude oil?

• A shift of demand curve to the right

• A shift of demand curve to the left

• A shift of supply curve to the right

• A shift of supply curve to the left

A government subsidies the production of pineapple.

This is likely to

• increase the price of pineapples

• raise the costs of supplying pineapples

• raise revenue for the government

• cause the supply of pineapples to increase at every price

What can cause the supply curve of a product to shift to the right?

• An increase in the demand for the product

• An increase in government subsidies to the product

• an increase in indirect taxes of the product

• an increase in the cost of production

On which factor of production does innovation directly depend on?

• decisions of entrepreneurs

• high inputs of capital

• long hours of manual labour

• plentiful supplies of land

What is the function of factors of production in an economy ?

• To make goods and services to fulfill needs and wants

• to provide an even distribution of income

• to provide tax income for the government

• to reduce the existence of external costs