Which of the Following Would Be Most Likely to Shift

question 25

Multiple Choice

Which of the following would be most likely to shift the long-run aggregate supply curve (LRAS) to the right?

• A) favorable weather conditions that increased the size of this year's grain harvest
• B) an increase in resource prices relative to product prices
• C) an increase in labor productivity as the result of improved computer technology and expansion of the Internet
• D) an increase in the cost of security as the result of terrorist activities

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Definitions:

Learning Curve

A concept indicating that the more often a task is performed, the lower the cost of doing it will become, due to increased efficiency and familiarity with the process.

Activity-Based Costing

A costing methodology that assigns costs to products and services based on the resources they consume, aiming for more accurate product costing and profitability analysis.

Nonvalue-Adding Activities

Tasks or processes that consume resources but do not add value or contribute to the customer's satisfaction or product's final worth.

Cost Driver Rate

A measure used in cost accounting to assign the costs of an activity to products or services, based on the extent of the activity they require.