An Increase in the Price of an Input Will Increase

question 9

Multiple Choice

An increase in the price of an input will increase the _____ of producing the final good and shift the supply curve of the commodity _____.

• A)marginal cost; upward
• B)transaction cost; upward
• C)marginal cost; downward
• D)transaction cost; downward

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Definitions:

Aggregate

refers to the total amount or sum of individual parts in economics or finance.

Desired Money Holding

The preference of individuals or firms for holding cash or liquid assets based on expected financial needs or uncertainties.

Aggregate Demand

The full extent of demand for all goods and services within an economy, measured against a specified price level across a given temporal span.

Employment Act of 1946

A United States federal law aiming to promote maximum employment, production, and purchasing power through economic stability policies.