Which of the Following Is an Example of a Supply

question 28

Multiple Choice

Which of the following is an example of a supply shock?

• A)A surge in consumer optimism prompts increased buying of goods and services.
• B)A surprise tax rebate from the government gives people more money to spend.
• C)A dramatic increase in energy prices increases production costs for firms in the economy.
• D)Government increases spending on education.

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Definitions:

Net Sales

The total revenue from sales transactions after subtracting returns, allowances for damaged or missing goods, and any discounts offered.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials, labor, and overhead costs.

Net Income

The final amount of profit made by a company once it subtracts all costs and taxes from its overall revenues.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting sold goods.