1.2.2 Supply Flashcards Preview

A Level Business Theme 1 > 1.2.2 Supply > Flashcards

Flashcards in 1.2.2 Supply Deck (20)
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1
Q

What does Supply mean?

A

Supply is the amount of a good or service that producers are willing and able to sell at any given price

2
Q

What are producers?

A

Producers are those people that create and supply goods and services to a market

3
Q

As price falls quantity supplied _______?

A

As price falls quantity supplied decreases

4
Q

As price rises quantity supplied _______?

A

As price rises quantity supplied increases

5
Q

What are factors affecting change in supply?

A
changes in the costs of production
introduction of new technology
indirect taxes
government subsidies
external shocks
6
Q

What are Costs of production?

A

Costs of production are created by the price of factor inputs i.e. the factors of production

7
Q

Improvements in technology can _______________?

A

help to reduce costs of production

8
Q

What is Taxation?

A

Taxation is a charge placed on individuals or firms; governments use taxation to finance their spending

9
Q

What are indirect Taxes?

A

Indirect taxes are those placed on goods and services produced by individuals and firms

10
Q

If indirect taxes are increased it becomes ____ expensive to produce a product?

A

More

11
Q

What are Subsidies?

A

Subsidies are finance provided by the government to encourage suppliers to produce goods and services

12
Q

Subsidies will make it cheaper to produce a product

therefore…?

A

The quantity supplied of that product will increase

13
Q

The withdrawal of subsidies will make it more expensive to produce a product. Therefore….?

A

the quantity supplied of that product will decrease

14
Q

External shocks are?

A

unexpected events that are outside of the businesses control but have a direct impact on the level of supply

15
Q

Price is the only element to cause a movement ____?

A

Along the curve

16
Q

Any factor that is not price causes the curve ____ ?

A

To shift

17
Q

The VAT rate for the UK is?

A

20%

18
Q

Can Subsidies help the country’s comapnies to compete?

A

Yes

19
Q

In increase in Supply causes a shift to the ___?

A

Right

20
Q

A Decrese in Supply causes a shift to the ____?

A

Left