A Level Supply Quiz 1

15 Questions

Quiz Description

This A level Economics quiz takes a good look at what supply is. Made up of 15 questions with each question having four options of which just one and only one is correct, the quiz has been set based on the national curriculum for the gce A level.  

When someone talks about supply, he or she simply means the quantities of a particular commodity or service which a seller is readily willing and able to offer for sale at different prices during a particular point in time. Supply is very closely related to demand in that demand is the direct inverse of supply. 

You can now go straight to the quizzes and start testing your knowledge and better prepare for your gce A level exams. 

Good Luck

1:

 Supply curve will shift when: 


Correct
  • 1:
    Price falls
  • 2:
    Price rises
  • 3:
    Demand shifts
  • 4:
    Technology change
2:

 An increase in demand would cause supply curve to: 


Correct
  • 1:
    Shift to the left
  • 2:
    Shift to the right
  • 3:
    Change in slope of supply curve
  • 4:
    No effect on supply
3:

 If elasticity of supply is greater than one. Supply curve will be: 


Correct
  • 1:
    Horizontal
  • 2:
    Vertical
  • 3:
    Passing through origin
  • 4:
    Touching y-axis
4:

 Supply surve: 


Correct
  • 1:
    Is vertical in long run
  • 2:
    Is flatter in long run
  • 3:
    Is same in long and short run
  • 4:
    Is horizontal in both short and long run
5:

 During a particular year farmers experienced a dry weather, if all other factors remain constant, farmers supply curve for wheat will shift to: 


Correct
  • 1:
    Rightward
  • 2:
    Leftward
  • 3:
    Downward
  • 4:
    Rise in supply
6:

 What best explains a shift in market supply curve to the right? 


Correct
  • 1:
    An advertising campaign is successful in promoting the good
  • 2:
    A new technique makes it cheaper to produce the good
  • 3:
    The government introduces a tax on the good
  • 4:
    The price of raw materials increases
7:

 
A vertical supply curve parallel to the price axis implies that the elasticity of supply is: 


Correct
  • 1:
    Zero
  • 2:
    Infinity
  • 3:
    Equal to one
  • 4:
    Greater than zero but less than infinity
8:

 Which of the following is the first stage in a supply chain for a chocolate bar? 


Correct
  • 1:
    The supplier of cocoa beans
  • 2:
    The manufacturer of the chocolate bar
  • 3:
    Transportation between each stage of the supply chain
  • 4:
    The retailer
9:

 Which of the following is a benefit to a supplier of consistently delivering products on time? 


Correct
  • 1:
    Repeat orders
  • 2:
    Lower prices
  • 3:
    Lower storage costs
  • 4:
    Minimal buffer stock held
10:

 What is the elasticity of supply, when price changes from ` 15 to ` 12 and supply change from 6 units to 5 units? 


Correct
  • 1:
    0.77
  • 2:
    0.87
  • 3:
    0.833
  • 4:
    0.58
11:

  Expansion in supply refers to a situation when the producers are willing to supply a : 


Correct
  • 1:
    Larger quantity of the commodity at an increased price
  • 2:
    larger quantity of the commodity due to increased taxation on that commodity
  • 3:
    Larger quantity of the commodity at the same price
  • 4:
    larger quantity of the commodity at the decreased price
12:

 Increase or Decrease in Supply means 


Correct
  • 1:
    Shift in Supply curve
  • 2:
    Movement along same supply curve
  • 3:
    Both (a) and (b)
  • 4:
    Neither (a) or (b)
13:

 If supply curve is Perfectly Inelastic, the supply curve is: 


Correct
  • 1:
    Vertical
  • 2:
    Horizontal
  • 3:
    Upward sloping
  • 4:
    Downward sloping
14:

 If the supply of a commodity is perfectly elastic, an increase in demand will result in: 


Correct
  • 1:
    Decrease in both price and quantity at equilibrium
  • 2:
    Increase in both price and quantity at equilibrium
  • 3:
    Increase in equilibrium quantity, equilibrium price remaining constant
  • 4:
    Increase in equilibrium price, equilibrium quantity remaining constant
15:

 When supply price increase in the short run, the profit of the producer _____: 


Correct
  • 1:
    Increases
  • 2:
    Decreases
  • 3:
    Remains constant
  • 4:
    Decreases marginally

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A Level Supply Quiz 1
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