WorksheetsABBE1033 Lecture 3 The Mechanics of Markets: Supply Theory
Total questions: 11
Worksheet time: 11mins
Name
Class
Date
1.
What is the law of supply?
a)
As the price of a good increases, the quantity supplied decreases.
b)
As the price of a good increases, the quantity supplied increases.
c)
As the price of a good decreases, the quantity supplied increases.
d)
The quantity supplied is independent of the price.
2.
What happens to the supply curve when there is a change in quantity supplied?
a)
The supply curve shifts to the right.
b)
The supply curve shifts to the left.
c)
There is movement along the supply curve.
d)
The supply curve becomes vertical.
3.
What is the result of a change in supply?
a)
A shift of the supply curve.
b)
Movement along the supply curve.
c)
A change in the quantity demanded.
d)
A change in consumer preferences.
4.
If the price of inputs decreases, what is the likely effect on the supply curve?
a)
The supply curve shifts to the right.
b)
The supply curve shifts to the left.
c)
There is movement along the supply curve.
d)
The supply curve becomes steeper.
5.
What does a movement along the supply curve indicate?
a)
A change in supply.
b)
A change in quantity supplied.
c)
A shift in demand.
d)
A change in consumer preferences.
6.
What is the effect of an increase in the number of sellers in the market?
a)
The supply curve shifts to the left.
b)
The supply curve shifts to the right.
c)
There is movement along the supply curve.
d)
The supply curve becomes vertical.
7.
How does a tax on production affect the supply curve?
a)
The supply curve shifts to the right.
b)
The supply curve shifts to the left.
c)
There is movement along the supply curve.
d)
The supply curve becomes horizontal.
8.
What is the effect of an expected future price increase on current supply?
a)
Increase in current supply
b)
Decrease in current supply
c)
No change in current supply
d)
Increase in current demand
9.
Which of the following would cause a change in supply rather than a change in quantity supplied?
a)
A change in the price of the good
b)
A change in production technology
c)
A movement along the supply curve
d)
None of the above
10.
How would an improvement in production technology likely affect the supply curve?
a)
Shift the curve to the left
b)
Shift the curve to the right
c)
Move along the existing curve
d)
Have no effect on the curve
11.
What effect would a government subsidy to producers typically have on supply?
a)
Decrease supply
b)
Increase supply
c)
No effect on supply
d)
Change quantity supplied but not supply
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