A Favorable Supply Shock Would

question 35

Multiple Choice

A favorable supply shock would

• A)shift the production function up and decrease marginal products at every level of employment.
• B)shift the production function down and decrease marginal products at every level of employment.
• C)shift the production function down and increase marginal products at every level of employment.
• D)shift the production function up and increase marginal products at every level of employment.

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Definitions:

Opportunity Cost

The benefit that is missed or given up when an investor, individual, or business chooses one alternative over another.

Proposed Use

An intended or suggested way of utilizing something, often laid out in plans or discussions before implementation.

Cash

Physical money, such as coins and bills, or balances in checking or savings accounts, available for use immediately.

Differential Analysis

A decision-making process that focuses on the costs and benefits that change between decision alternatives.