The Aggregate Supply Curve Will Shift as a Result of a Change

question 22

Multiple Choice

The aggregate supply curve will shift as a result of a change in
1) the wage rate;
2) the price level;
3) technology.

• A)1 only
• B)2 only
• C)3 only
• D)1 and 3
• E)2 and 3

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Definitions:

External Costs

Costs that fall on third parties who are not directly involved in a transaction or economic activity.

Marginal Social Costs

The total cost to society of producing one extra unit of a good or service, including both private costs and any externalities.

Property Rights

Legal rights to use, derive benefit from, and transfer property.

Negative Externality

An adverse effect or cost suffered by a third party due to an economic transaction they were not involved in.