When the Price of Inputs Increase

question 148

Multiple Choice

When the price of inputs increase:

• A) the supply curve shifts down and to the right.
• B) the supply curve shifts up and to the left.
• C) there is an upward movement along the supply curve.
• D) there is a downward movement along the supply curve.

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Definitions:

Understatement

The act of reporting less income or fewer assets than actually exist, often resulting in a lower tax liability but potentially leading to penalties if deliberate.

Fraud

An intentional deception made for personal gain or to damage another individual.

25%

A rate or portion equal to one fourth or 25 out of 100 parts in a given context, often related to taxes, discounts, or interest rates.

Tax Liability

The total amount of tax owed by an individual or entity to the tax authorities.