Figure 3-11 In Figure 3-11, Suppose D ₁ and S ₁ Indicate

question 575

Multiple Choice

Figure 3-11
In Figure 3-11, suppose D ₁ and S ₁ indicate initial conditions in the market for kitchen cabinets. Which of the following would tend to cause the supply curve to shift from S ₁ to S ₂?

• A) the invention of "folding" plates and cups that take up substantially less storage space in the kitchen
• B) a decrease in consumer income
• C) a decrease in the price of wood, a resource used to produce kitchen cabinets
• D) an increase in the price of steel hinges, a resource used to produce kitchen cabinets

Analyze the impact of educational attainment and demographic factors on income disparities.

Evaluate arguments for and against redistributing income and wealth, considering economic efficiency and ethical considerations.

Understand the role and impact of government tax and transfer programs on income distribution and poverty in the United States.

Identify and describe the major government programs that affect income distribution, including Social Security, agriculture subsidies, and the Earned Income Tax Credit.

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Definitions:

Bowed Outward

Describes a curve (such as in production possibilities frontier) that shows increasing opportunity costs for producing two goods.

Capital

Assets with monetary value, including cash and commodities, which are utilized to produce income or accumulate wealth.

Opportunity Costs

The financial loss associated with rejecting the next most favorable option during decision-making.

Inputs

Assets like work, supplies, and funds that are utilized in the manufacturing process to produce products and services.