Economics Unit 2 and 3 DA Review

Which of the following best describes a determinant (shifter) of supply?

• Consumer preferences

• Technology

• Price of the product itself

• Consumer income

What effect does an increase in the number of sellers in a market typically have on the supply curve?

• Shifts the supply curve to the left

• Shifts the supply curve to the right

• No effect on the supply curve

• Causes the supply curve to become vertical

Which government action is most likely to increase the supply of a good?

• Imposing a new business tax

• Introducing a subsidy for producers

• Increasing regulations

• Setting a price ceiling

If the availability of a key resource decreases, what is the most likely effect on the supply of a product?

• Supply increases

• Supply decreases

• Supply remains unchanged

• Demand increases

Which of the following is an example of a government regulation that could decrease supply?

• Lowering business taxes

• Providing subsidies

• Imposing stricter environmental standards

• Reducing import tariffs

A government subsidy to wheat farmers will most likely result in which of the following?

• A leftward shift of the supply curve for wheat

• A rightward shift of the supply curve for wheat

• No change in the supply curve for wheat

• A decrease in the number of wheat sellers

How does an increase in the cost of resources affect the equilibrium price and quantity in a market, assuming demand remains constant?

• Equilibrium price rises, equilibrium quantity falls

• Equilibrium price falls, equilibrium quantity rises

• Both equilibrium price and quantity rise

• Both equilibrium price and quantity fall

If the government imposes a new tax on producers, what is the most likely impact on the market supply curve?

• The supply curve shifts to the right

• The supply curve shifts to the left

• The supply curve becomes steeper

• The supply curve becomes flatter

Which scenario best illustrates the impact of resource availability on supply?

• A drought reduces the wheat harvest, decreasing wheat supply

• A new advertising campaign increases demand for wheat

• Consumers switch from wheat to rice

• The price of wheat increases

A new regulation requires all factories to install expensive pollution control equipment. What is the most likely effect on the supply of goods produced by these factories?

• Supply increases due to improved technology

• Supply decreases due to higher production costs

• Supply remains unchanged

• Demand increases