1. When there is an increase in the price of a good and the quantity supplied also increases, this demonstrates:
A. A movement along the supply curve
B. A shift in the supply curve
C. A change in demand
D. None of the above
Answer: A. A movement along the supply curve
Explanation: An increase in the price of a good typically leads to an increase in the quantity supplied, which results in a movement along the existing supply curve.
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2. If the cost of raw materials used in production decreases, what is the likely effect on the supply of the final product?
A. Increase in supply
B. Decrease in supply
C. No change in supply
D. Indeterminate
Answer: A. Increase in supply
Explanation: A decrease in production costs, such as raw materials, generally enables producers to supply more at each price level, leading to an increase in supply.
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3. What term describes a change in the quantity supplied due to a change in the market price of a good?
A. Movement along the supply curve
B. Shift in the supply curve
C. Change in demand
D. Equilibrium
Answer: A. Movement along the supply curve
Explanation: A change in the market price results in a movement along the supply curve, indicating a change in the quantity supplied, not a shift of the curve itself.
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4. If there is an increase in the number of suppliers in an industry, what is the likely effect on the overall supply of the good?
A. Increase in supply
B. Decrease in supply
C. No change in supply
D. Indeterminate
Answer: A. Increase in supply
Explanation: An increase in the number of suppliers generally leads to an increase in the overall supply of the good as more producers offer the product.
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5. Which factor is most likely to lead to a shift in the entire supply curve?
A. Technological advancement
B. Change in market price
C. Change in consumer preferences
D. Change in quantity supplied
Answer: A. Technological advancement
Explanation: Technological advancements improve production efficiency, leading to a shift in the supply curve to the right, indicating a higher supply at every price level.
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6. If a government implements a subsidy for a particular product, what is the likely effect on the supply of that product?
A. Increase in supply
B. Decrease in supply
C. No change in supply
D. Indeterminate
Answer: A. Increase in supply
Explanation: A subsidy reduces production costs, encouraging producers to supply more, resulting in an increase in supply.
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7. When producers anticipate higher future prices and reduce current supply, this is an example of:
A. Movement along the supply curve
B. A shift in the supply curve
C. Change in demand
D. Equilibrium
Answer: B. A shift in the supply curve
Explanation: Anticipation of higher future prices leads to a reduction in current supply, shifting the supply curve to the left as producers hold back supply.
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8. If a natural disaster disrupts the production process, what is the likely effect on the supply of the affected goods?
A. Decrease in supply
B. Increase in supply
C. No change in supply
D. Indeterminate
Answer: A. Decrease in supply
Explanation: A natural disaster typically reduces the ability to produce goods, leading to a decrease in supply due to disrupted production capabilities.
9. What happens to the supply of a good if there is a significant increase in the cost of production inputs?
A. Decrease in supply
B. Increase in supply
C. No change in supply
D. Indeterminate
Answer: A. Decrease in supply
Explanation: A significant increase in production input costs typically raises the overall cost of production, leading to a decrease in supply as it becomes more expensive for producers to maintain the same production levels.
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BSED Major in Social Studies 2
Non-FictionThese materials provide lecture notes, quizzes, and resources for BSED Social Studies students, covering key topics such as history, geography, economics, and political science. Marjhon Mascardo shares a personal note, reflecting on his college jour...
