Increases in the Quality of Inputs That Do Not Affect

question 9

Multiple Choice

Increases in the quality of inputs that do not affect the quantity of those inputs,

• A) shift LAS rightward but not SAS.
• B) increase aggregate quantity supplied.
• C) shift both LAS and SAS rightward.
• D) shift SAS rightward but not LAS.
• E) shift LAS rightward and increase aggregate quantity supplied.

---

Definitions:

Cost Of Goods Sold

Refers to the total expense directly related to the production of goods or services a company sells.

Current Ratio

A liquidity ratio; current assets are divided by current liabilities to indicate a company’s ability to pay its short-term debt. This ratio does not provide as much certainty as the acid test ratio.

Current Assets

Assets that can be converted into cash or used within one year or the normal operating cycle of the business, whichever is longer.