Quiz on Supply in Business

What is the definition of supply in business?

• The quantity of a good or service a producer is willing to make available

• The total sales revenue of a product

• The total amount of money a business makes

• The number of employees in a business

Which factor does NOT lead to a change in supply?

• Government subsidies

• Changes in the costs of production

• Introduction of new technology

• Increase in consumer demand

How does an increase in price typically affect supply?

• Supply decreases

• Supply remains unchanged

• Supply increases

• Supply becomes unpredictable

What happens when the costs of production increase?

• Businesses may decide to produce more

• Businesses may decide to produce less

• Prices will always decrease

• Sales will always increase

What effect do government subsidies have on supply?

• They increase supply

• They have no effect on supply

• They make production more expensive

• They decrease supply

Which of the following is considered an external shock?

• Increase in government subsidies

• Changes in oil prices

• Introduction of new technology

• Increase in production costs

What is the relationship between price and supply?

• It decreases the supply of goods

• It makes production slower

• They have a direct relationship

• It increases the supply of goods

Which of the following would likely decrease supply?

• Increase in productivity

• Increase in oil prices

• Introduction of robots

• Decrease in indirect taxes

What is the relationship between supply and price?

• As price increases, supply typically decreases

• As price increases, supply typically increases

• Supply is always constant regardless of price

• They are unrelated

What would automation do to cost of production?

• Decrease cost of production

• Increase cost of production

• Increases the number of workers in a factory

• Has no effect on cost of production