Questions Refer to the Following Diagram

question 44

Multiple Choice

Questions refer to the following diagram.

-Suppose this represents the market for U.S.autoworkers.If the government were to pass legislation mandating that all vehicles sold in the U.S.contain at least 50% domestically produced or assembled components,then:

• A)supply would shift to the right,reducing economic rent to U.S.autoworkers
• B)supply would shift to the left,reducing economic rent to U.S.autoworkers
• C)demand would shift to the right,reducing economic rent to U.S.autoworkers
• D)demand would shift to the right,increasing economic rent to U.S.autoworkers

---

Definitions:

Current Assets

Assets on a balance sheet expected to be converted into cash, sold, or consumed within one year or the business cycle, whichever is longer.

Current Liabilities

Current Liabilities are a company's debts or obligations that are due to be paid to creditors within one year, including accounts payable, short-term loans, and other short-term financial obligations.

Investor-Supplied Operating Assets

Assets provided by investors for the purpose of generating sales and profits for the business, such as plant, equipment, and inventory.

Weighted Average Cost

The combined rate of all the costs associated with securing financing, taking into account the proportional contribution of each component of the company's capital structure.