Refer to the Accompanying Figure

question 63

Multiple Choice

Refer to the accompanying figure.What event would cause the supply curve to shift out?

• A) Consumers earn higher incomes.
• B) Consumers earn lower incomes.
• C) The price of an input increased.
• D) Firms entered the market.
• E) Firms expected the price to rise in the future.

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Definitions:

Real GDP

Gross Domestic Product adjusted for inflation, measuring the value of all goods and services produced within a country in real terms.

Taxation

The process by which governments charge fees on individual or corporate income, activities, or products to fund government activities.

Expenditures

The total amount spent on goods and services, including both personal consumption and investment by businesses.

Income

Income is the money received, especially on a regular basis, for work or through investments.