A Positive Supply Shock Could Be Caused by

question 33

Multiple Choice

A positive supply shock could be caused by

• A)an increase in exports.
• B)bad weather which cripples telecommunications for one month.
• C)an outbreak of war among oil- exporting countries.
• D)improved computer literacy for the typical worker.
• E)a general labour strike across the country.

---

Definitions:

Standard Costs

Estimated or predetermined costs of manufacturing, selling, and administering a product or service.

Expected Future Costs

Projected expenses that a company anticipates incurring in the pursuit of its future activities.

Unavoidable Waste

Waste that cannot be prevented due to the nature of the production process or operational constraints.

Normal Spoilage

The expected or inevitable waste and inefficiency in production processes that is considered acceptable.