Supply and Production Concepts Quiz
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Questions and Answers

What is the difference between production and supply?

  • Production refers to the determinants of supply, while supply refers to the quantity produced.
  • Production refers to the quantity offered for sale, while supply refers to the quantity willing to be supplied. (correct)
  • Production refers to the factors influencing supply, while supply refers to the price of related goods.
  • Production refers to the quantity willing to be supplied, while supply refers to the quantity offered for sale.

    • Which factor has a direct relationship with supply according to the text?

  • Price of related goods
  • Government policy
  • Price of factor of production (correct)
  • Price of the product

    • What does the law of supply refer to?

  • The change in quantity demanded due to change in price
  • The change in quantity supplied due to change in demand
  • The change in price due to change in quantity demanded
  • The change in quantity supplied due to change in price, keeping other factors constant (correct)

    • What is the supply function?

    <p>A functional relationship between quantity supplied and factors influencing supply</p> Signup and view all the answers

    Which factor does not influence market supply according to the text?

    <p>Demand for the product</p> Signup and view all the answers

    What does a direct relationship between price and quantity supplied mean?

    <p>As price increases, quantity supplied increases</p> Signup and view all the answers

    What is the difference between production and supply?

    <p>Production refers to the quantity offered for sale, while supply refers to the quantity willing to be offered for sale.</p> Signup and view all the answers

    What does the law of supply refer to?

    <p>The relationship between price and quantity supplied when all other factors remain constant.</p> Signup and view all the answers

    Which of the following is a determinant of supply according to the text?

    <p>Number of firms</p> Signup and view all the answers

    What is a factor affecting market supply according to the text?

    <p>Natural calamities</p> Signup and view all the answers

    What is the supply function?

    <p>A functional relationship between quantity supplied and factors influencing supply.</p> Signup and view all the answers

    Which factor has a direct relationship with supply according to the text?

    <p>Price of factor of production</p> Signup and view all the answers

    Which factor does not influence market supply according to the text?

    <p>Number of firms</p> Signup and view all the answers

    What does the law of supply state?

    <p>There is a direct relationship between price and quantity supplied when all other factors remain constant.</p> Signup and view all the answers

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