When Government Intervenes in the Production Process Because External Costs

question 205

Multiple Choice

When government intervenes in the production process because external costs exist, it typically attempts to shift the industry's

• A) demand curve to the right.
• B) demand curve to the left.
• C) supply curve to the right.
• D) supply curve to the left.

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Definitions:

Entered the Labor Force

Describes individuals who have reached working age and are actively seeking employment or are currently employed.

Sectoral Shifts

Changes in the economic landscape that affect specific sectors of the economy, leading to shifts in labor demand and supply.

Structural Unemployment

A form of unemployment caused by a mismatch between the skills that workers in the labor market offer and the skills demanded by employers.

Demand for Output

The desire and willingness of consumers or businesses to purchase goods or services produced within an economy.