-In the Above Figure, the Economy Is at Point A an Increase

question 331

Multiple Choice

-In the above figure, the economy is at point A. An increase in oil prices that sets off a cost-push inflation will initially move the economy from point A to point

• A) A, that is, the economy does not change.
• B) B.
• C) C.
• D) D.

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Definitions:

Externalities

Negative or positive impacts on third parties stemming from business operations, which are not accounted for in the pricing of products or services.

Market Equilibrium

A state in a market where the quantity supplied equals the quantity demanded, leading to a stable market price and no excess supply or demand.

Total Benefit

The complete gain obtained from consuming a good or service.

Patent System

A legal system granting inventors exclusive rights to their inventions, preventing others from making, using, selling, or distributing the patented invention without permission.