An Increase in the Costs of Resources or Inputs of Production

question 35

Multiple Choice

An increase in the costs of resources or inputs of production would shift the:

• A)short-run aggregate supply curve rightward.
• B)short-run aggregate supply curve leftward.
• C)long-run aggregate supply curve rightward.
• D)long-run aggregate supply curve leftward.

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Definitions:

Antitrust Laws

Regulations designed to promote fair competition for the benefit of consumers, by limiting monopolistic practices and ensuring market competitiveness.

Economic Efficiency

A condition in which every resource is optimally allocated to serve each individual or entity in the best way while minimizing waste and inefficiency.

Conglomerate Merger

The merger of two firms operating in separate industries or separate geographic areas so that neither firm is a supplier, customer, or competitor of the other; any merger that is neither a horizontal merger nor a vertical merger.

Price-Fixing

An illegal agreement among competitors to maintain prices at a certain level, preventing competition.