National 5 Economics Supply Quiz

What is the law of supply?

• As the price of a good or service increases, the quantity supplied by producers also increases, and vice versa.

• As the price of a good or service increases, the quantity supplied by producers decreases

• The law of supply only applies to services, not goods

• The law of supply states that the quantity supplied remains constant regardless of price changes

What are the factors that affect supply?

• Demand for the product

• Weather conditions

• Cost of production, technology, government policies, number of suppliers

• Consumer preferences

Explain the concept of supply curve.

• The supply curve represents the cost of producing a good at different quantities

• The supply curve illustrates the quantity of a good that producers are willing to supply at different prices.

• The supply curve is unrelated to the price of a good

• The supply curve shows the demand for a good at different prices

How does the law of supply affect the quantity supplied?

• The law of supply has no impact on the quantity supplied

• The law of supply affects the quantity supplied by stating that as the price of a good or service increases, the quantity supplied also increases, and vice versa.

• The quantity supplied decreases as the price of a good or service increases

• The quantity supplied remains constant regardless of the price

Discuss the relationship between price and quantity supplied.

• Fluctuating relationship

• No relationship

• Positive relationship

• Negative relationship

What are some examples of factors that can shift the supply curve?

• Changes in production costs, technology, taxes, subsidies, and expectations about future prices

• Changes in demand

• Consumer preferences

How does technology impact the supply of goods and services?

• Technology has no impact on the supply of goods and services

• Technology only impacts the demand for goods and services

• Technology can increase the efficiency of production and distribution, leading to an increase in the supply of goods and services.

What role does government policy play in influencing supply?

• Government policy can directly impact the supply of goods and services through regulations, taxes, subsidies, and trade restrictions.

• Government policy can only influence supply in a small way

• Government policy only affects demand, not supply

• Government policy has no impact on supply