If Output Decreases,which of the Following Would Occur

question 154

Multiple Choice

If output decreases,which of the following would occur?

• A) Prices of non-labor inputs,input requirements per unit of output and unit costs would all increase and the economy would move upward along the aggregate supply curve.
• B) Prices of non-labor inputs,input requirements per unit of output and unit costs would all decrease and the economy would move upward along the aggregate supply curve.
• C) Prices of non-labor inputs,input requirements per unit of output and unit costs would all increase and the economy would move downward along the aggregate supply curve.
• D) Prices of non-labor inputs,input requirements per unit of output and unit costs would all decrease and the economy would move downward along the aggregate supply curve.
• E) Prices of non-labor inputs would decrease,input requirements per unit of output would increase and the economy would move upward along the aggregate supply curve.

Understand the impact of government policies on income distribution and the rationale for income transfers.

Recognize arguments for and against the use of lotteries as a means of funding government services.

Comprehend the concept of tax shifting and its implications for different taxes.

Interpret the circular flow model to understand government's role in the economy.

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Definitions:

Intercept

In mathematics and statistics, the point at which a line or curve intersects a given axis on a graph.

Predicted Income

An estimate of future income based on variables such as education, occupation, and previous earnings.

Correlation

A statistical measure that expresses the extent to which two variables change together, suggesting a possible relationship between them.

Prediction Error

The difference between an observed value and the value predicted by a model.