The Supply for Some Good or Service Will Decrease

question 14

Multiple Choice

The supply for some good or service will decrease

• A)if the prices of inputs increase.
• B)if technology improves.
• C)if more suppliers enter the industry.
• D)if technology improves and the price of inputs falls.
• E)if the prices of inputs fall.

---

Definitions:

Multiplier

The factor by which an initial change in spending will alter total economic output, usually in the context of fiscal or monetary policy.

MPC

Marginal Propensity to Consume, which is the proportion of additional income that a consumer spends on goods and services as opposed to saving it.

Capital Goods

Long-term assets such as buildings, machinery, and equipment used in the production of goods and services.

Money Supply

The overall sum of money available in an economy at a designated moment.