Use the Following to Answer Questions

question 220

Multiple Choice

Use the following to answer questions:
Figure: Supply Shift
-(Figure: Supply Shift) What would cause the supply curve to shift from S₁ to S₂ as shown in the diagram?

• A) an increase in taxes on firms' output
• B) an increase in the price of inputs used to produce the output
• C) a decrease in the number of firms that produce the output
• D) a decrease in the wages paid to union workers who produce the output

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Definitions:

Adam Smith

An 18th-century Scottish economist and philosopher regarded as the father of modern economics, known for his work on free markets and the division of labor.

Cost More

Refers to an increase in the price or expense required to purchase or produce something compared to a previous period.

World Trade Organization

An international organization designed to supervise and liberalize world trade, by providing a forum for negotiating trade agreements and a dispute resolution process.

Agricultural Products

Goods derived from the cultivation of land and the raising of crops and livestock.