Which of the Following Events Would Cause a Demand Shock

question 49

Multiple Choice

Which of the following events would cause a demand shock?

• A) Refinery capacity in the United States drops permanently.
• B) A new pest destroys much of the alfalfa crop in a given year.
• C) The government spends less on infrastructure maintenance.
• D) Housing prices fall.

---

Definitions:

Recorded Quantities

The documented amounts of inventory or assets that have been formally noted in accounting records.

Non-Operating Activities

Business activities that are not related to the company's primary operations, such as investment income or losses from the sale of assets.

Income from Operations

The profit realized from a business's core operations, excluding income from other sources and expenses unrelated to the core operations.

Non-Operating Activities

Non-operating activities involve transactions not related to the core business operations, such as investment income or losses and extraordinary items.