If the United States Were to Pass Legislation That Would

question 131

Multiple Choice

If the United States were to pass legislation that would make it harder for people to emigrate to the United States, this would cause

• A) the short-run aggregate supply curve to become nearly vertical at all levels of output.
• B) the short-run aggregate supply curve to shift to the left.
• C) the short-run aggregate supply curve to become flatter.
• D) the short-run aggregate supply curve to shift to the right.

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay and what they actually pay for a good or service.

Surplus II

An excess of supply over demand, leading to lower prices and potential inefficiencies in the market.

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services available matches the amount that consumers want to buy.

Willingness to Pay

The maximum amount an individual is prepared to spend on a good or service, reflecting the value they derive from it.