Lesson 4.1.3.3

4.1.3.3 The determinants of the supply of goods and services Quiz: AQA Economics, Unit 1

20 questions

Written by Revision Ninja · Last reviewed 11 October 2026

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Lesson 4.1.3.3, The determinants of the supply of goods and services: 20 multiple choice questions for the AQA Economics (7136), Unit 1: Individuals, firms, markets and market failure, written with Revision Ninja.

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The 20 questions

  1. What variable is plotted against price on a market supply curve?

    • Quantity supplied
    • Quantity demanded
    • Marginal revenue
    • Consumer income

  2. Why does a higher market price incentivize firms to increase output?

    • Decreased marginal revenue
    • Lower production costs
    • Higher potential profits
    • Falling consumer demand

  3. Which factor causes a supply curve to shift to the right?

    • Rising material costs
    • Higher indirect taxes
    • Improved technology
    • Increased wage costs

  4. Which factor causes a supply curve to shift to the left?

    • Lower indirect taxes
    • Higher material costs
    • Improved technology
    • Government subsidies

  5. How does a per-unit subsidy to producers affect the supply curve?

    • Movement down
    • Shift right
    • Shift left
    • Movement up

  6. How does an increase in indirect tax on a good affect its supply curve?

    • Shift right
    • Shift left
    • Movement up
    • Movement down

  7. Bad weather causing a poor crop harvest leads to which effect on agricultural supply?

    • Shift right
    • Shift left
    • Contraction along curve
    • Extension along curve

  8. If firms expect higher prices next year, what happens to current market supply?

    • Decreases
    • Remains unchanged
    • Increases
    • Becomes elastic

  9. Under perfect competition, a firm's short-run supply curve is formed by which cost curve?

    • Marginal cost
    • Average cost
    • Total cost
    • Fixed cost

  10. Which factor causes a movement along a supply curve rather than a shift?

    • Firm subsidies
    • Good's own price
    • Indirect taxes
    • Production costs

  11. What effect does the entry of new firms into an industry have on market supply?

    • Movement up
    • Shift right
    • Movement down
    • Shift left

  12. A rise in raw material costs causes the supply curve of a good to:

    • Movement up
    • Movement down
    • Shift right
    • Shift left

  13. What does a rise in a good's own price directly cause on its supply curve?

    • Shift to right
    • Shift to left
    • Contraction of supply
    • Extension of supply

  14. A change in the total number of sellers in a market causes what effect?

    • Supply curve shift
    • Change in elasticity
    • Movement along curve
    • Demand curve shift

  15. Why is price elasticity of supply generally higher in the long run than short run?

    • Inputs can adjust
    • Prices freeze
    • Demand increases
    • Fixed costs rise

  16. What effect does a major natural disaster in a farming region have on agricultural supply?

    • Shift right
    • Shift left
    • Contraction along curve
    • Extension along curve

  17. How do stricter government regulations raising production costs affect the supply curve?

    • Movement down
    • Shift left
    • Movement up
    • Shift right

  18. Why does a higher market price encourage firms to expand output?

    • Higher wage costs
    • Lower capital costs
    • Higher profit margins
    • Lower production costs

  19. How does a rise in worker wages in an industry affect its supply curve?

    • Movement up
    • Shift right
    • Movement down
    • Shift left

  20. How does price elasticity of supply in the short run compare to the long run?

    • More elastic
    • Less elastic
    • Identical
    • Perfectly elastic

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