BSED Major in Social Studies 2

Socsci 4 7.Supply

1. What is a supply schedule?
A. A graphical representation of supply and demand
B. A tabular representation of the quantity supplied at various price levels
C. The relationship between price and quantity demanded
D. The total amount of a good available in the market
Answer: B. A tabular representation of the quantity supplied at various price levels.
A supply schedule provides a detailed table showing the amounts of a good that producers are willing to supply at different price levels.

2. What does a supply curve illustrate?
A. The relationship between price and quantity supplied
B. The relationship between price and quantity demanded
C. The relationship between cost and profit
D. The relationship between demand and consumer preferences
Answer: A. The relationship between price and quantity supplied.
A supply curve visually represents how the quantity of a good supplied changes in relation to its price.

3. According to the Law of Supply, what happens when the price of a good increases?
A. Quantity supplied decreases
B. Quantity supplied remains unchanged
C. Quantity supplied increases
D. Quantity supplied becomes unpredictable
Answer: C. Quantity supplied increases.
The Law of Supply indicates that, ceteris paribus, an increase in the price of a good leads to an increase in the quantity that producers are willing to supply.

4. If all other factors remain constant, what is the typical shape of a supply curve?
A. Downward sloping
B. Upward sloping
C. Horizontal
D. Vertical
Answer: B. Upward sloping.
A typical supply curve slopes upwards from left to right, indicating that higher prices correlate with greater quantities supplied.

5. What is assumed to be constant when applying the Law of Supply?
A. Price
B. Production costs and other factors
C. Consumer preferences
D. Market demand
Answer: B. Production costs and other factors.
The Law of Supply operates under the assumption that all other variables affecting supply, such as production costs, remain unchanged.

6. Which axis of a supply curve graph represents price?
A. X-axis
B. Y-axis
C. Z-axis
D. None of the above
Answer: B. Y-axis.
In the graph of a supply curve, the vertical axis (Y-axis) represents the price of the good or service being analyzed.

7. What is the primary purpose of a supply schedule?
A. To show the relationship between price and demand
B. To illustrate the relationship between cost and profit
C. To provide a tabular representation of quantity supplied at different prices
D. To demonstrate the relationship between supply and quantity
Answer: C. To provide a tabular representation of quantity supplied at different prices.
The main goal of a supply schedule is to clearly show the quantity of a good supplied at various price levels in a structured table format.

8. How does the Law of Supply describe the relationship between price and quantity supplied?
A. It asserts a direct positive relationship
B. It posits a negative correlation
C. It states an inverse relationship
D. It suggests an unpredictable connection
Answer: A. It asserts a direct positive relationship.
The Law of Supply states that there is a direct positive relationship between price and quantity supplied; as price increases, quantity supplied also increases.

9. Which of the following is a key assumption of the Law of Supply?
A. Consumer preferences remain unchanged
B. Production costs fluctuate
C. Technological advancements occur
D. All other factors are held constant
Answer: D. All other factors are held constant.
A fundamental assumption of the Law of Supply is that while analyzing the relationship between price and quantity supplied, all other influencing factors are kept constant.

10. What is the main difference between a supply schedule and a supply curve?
A. A supply curve is a graphical representation, while a supply schedule is tabular
B. A supply schedule shows quantity demanded, while a supply curve shows quantity supplied
C. A supply curve is used for individual goods, while a supply schedule is for aggregate markets
D. A supply schedule is used in microeconomics, while a supply curve is used in macroeconomics
Answer: A. A supply curve is a graphical representation, while a supply schedule is tabular.
A supply schedule provides the quantity supplied at various price levels in a table format, while a supply curve visually represents this relationship in a graph.