Which Is a Negative Supply Shock

question 80

Multiple Choice

Which is a negative supply shock?

• A) a lower world price for oil.
• B) a lower world price for copper.
• C) a drought on the Prairies that reduces wheat production.
• D) a scientific discovery that lowers costs for solar energy.
• E) all of the above are negative supply shocks.

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Definitions:

Antitrust Action

A legal step initiated to prevent or reduce anti-competitive practices, promoting fair competition in the market.

Competitive

Competitive refers to the characteristic of entities that are in a state of rivalry, vying for the same objectives or markets.

Chicago School

refers to a school of economic thought that promotes free-market principles and holds that economic freedom leads to economic development.

Traditional Antitrust

Laws and regulations designed to protect trade and commerce from unlawful restraints, monopolies, and unfair business practices.