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IGCSEEconomicsCambridge (CIE)Exam Questions2. The Allocation of Resources2.4 Supply

Supply (Cambridge (CIE) IGCSE Economics): Exam Questions

Exam code: 0455 & 0987

59 mins26 questions

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2.4 Supply

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11 mark

What can cause the supply curve for a product to shift to the right?

  • an increase in demand for the product

  • an increase in government subsidies to producers

  • an increase in indirect taxes on the product

  • an increase in the costs of production

Choose your answer

21 mark

What does individual supply refer to?

  • The total quantity of a product supplied in the market

  • The quantity of a product supplied by an individual producer

  • The demand for a product by an individual consumer

  • The price of a product in the market

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31 mark

What is the key difference between individual supply and market supply?

  • Individual supply considers the quantity supplied by all producers, while market supply focuses on a single producer's output

  • Individual supply refers to a single producers supply in the market, while market supply refers to the supply by all the producers

  • Individual supply refers to the total supply in the market, while market supply refers to the supply by individual producers

  • There is no difference; the terms are used interchangeably

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41 mark

What term describes a graph that illustrates the relationship between the quantity of a good supplied by an individual producer and its price?

  • Demand curve

  • Market supply curve

  • Supply schedule

  • Individual supply curve

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51 mark

How does an improvement in technology typically affect supply?

  • Supply increases

  • Supply decreases

  • Supply remains unchanged

  • Supply becomes inelastic

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11 mark

What is not held constant when constructing the supply curve of a firm?

  • indirect taxes and subsidies on the firm’s products

  • the level of technology used by the firm in production

  • the price of the factors of production paid for by the firm

  • the market price of the good produced by the firm

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21 mark

If the government imposes a tax on a product, what is the likely impact on its supply curve?

  • The supply curve shifts to the left

  • The supply curve shifts to the right

  • The supply curve remains unchanged

  • The supply curve becomes inelastic

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31 mark

How does an increase in the number of suppliers in a market impact the supply curve?

  • The supply curve becomes less elastic

  • The supply curve shifts to the left

  • The supply curve becomes more elastic

  • The supply curve shifts to the right

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41 mark

What is the effect on the supply curve of a product if there is an increase in the price of a key raw material used in its production?

  • The supply curve shifts to the left

  • The supply curve remains unchanged

  • The supply curve shifts to the right

  • The supply curve becomes inelastic

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51 mark

What effect would an increase in government subsidies for solar panel manufacturers have on the supply of solar panels?

  • Supply would increase

  • Supply would decrease

  • Supply would remain unchanged

  • Supply would become elastic

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11 mark

There has been a movement upwards along the supply curve of a product.

What is the most likely explanation for this?

  • Consumer incomes have fallen.

  • New technology has made the product cheaper to produce.

  • The government has imposed a tax on the product.

  • The price of a substitute has increased.

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21 mark

What impact does an increase in the cost of labor have on the supply curve for a product?

  • It shifts the supply curve to the right

  • It shifts the supply curve to the left

  • It causes a movement along the supply curve to the right

  • It causes a movement along the supply curve to the left

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31 mark

If a natural disaster destroys a significant portion of a country's agricultural land, what is the likely impact on the supply of food products?

  • Supply would increase due to higher prices

  • Supply would decrease due to lower prices

  • Supply would remain unchanged due to government intervention

  • Supply would decrease due to reduced production capacity

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41 mark

How does a decrease in an indirect tax rate typically affect the producer's willingness to supply a product?

  • It decreases the willingness to supply

  • It increases the willingness to supply

  • It has no impact on the willingness to supply

  • It leads to inelastic supply

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51 mark

Which of the following factors is likely to cause a rightward shift in the supply curve for smartphones?

  • An increase in the cost of raw materials used in smartphone production

  • A increase in the wages of smartphone assembly workers

  • A decrease in consumer demand for smartphones

  • A technological breakthrough that increases smartphone production efficiency

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