Economics B 1.3.2

What does a supply curve show in the context of a market?

• The relationship between the price of a good and the quantity demanded

• The relationship between the price of a good and the quantity supplied

• The relationship between the cost of production and the quantity demanded

• The relationship between the producers' decisions and the consumers' preferences

What is generally true about the slope of a supply curve?

• It is usually a negative slope.

• It is usually a positive slope.

• It is always a horizontal line.

• It is always a vertical line.

What happens when there is a "shift" in the supply curve?

• The curve moves up or down without changing its slope.

• The quantity supplied changes at every price level.

• The price of the good changes but the quantity supplied remains the same.

• The curve becomes steeper or flatter.

Which factor can cause a shift in the supply curve?

• Changes in consumer preferences

• Changes in the costs of production

• Changes in the weather conditions

• Changes in the quantity demanded

How can new technology affect the supply curve?

• It can decrease the efficiency of production and shift the supply curve inwards.

• It can increase the price of goods and shift the supply curve downwards.

• It can increase the efficiency of production and shift the supply curve outwards.

• It has no effect on the position of the supply curve.

What is the effect of indirect taxes on the supply of goods?

• They increase the supply of goods as producers are willing to produce more.

• They have no effect on the supply of goods.

• They decrease the supply of goods as producers are less willing to produce for decreased profits.

• They increase the cost of goods but also increase the supply simultaneously.

How do subsidies affect the cost of production and supply of goods?

• They increase the cost of production and decrease supply.

• They have no effect on the cost of production or supply.

• They decrease the cost of production and increase supply.

• They decrease the cost of production but also decrease supply.

What is the impact of an increase in the number of firms within an industry on the supply curve?

• It has no impact on the supply curve.

• It shifts the supply curve to the left, indicating a decrease in supply.

• It shifts the supply curve to the right, indicating an increase in supply.

• It makes the supply curve perfectly elastic.

Which of the following is an example of an external shock that can affect the supply curve?

• A decrease in consumer demand for a good.

• A new technology that makes production more efficient.

• A financial crisis in a different sector of the economy.

• An increase in the number of consumers in the market.

What role does government regulation play in affecting the supply curve?

• It has no effect on the supply curve.

• It can shift the supply curve to the left, indicating a decrease in supply due to increased regulations.

• It can shift the supply curve to the right, indicating an increase in supply due to decreased regulations.

• It only affects the demand curve, not the supply curve.