Which of these is not a beneficial supply shock?
A) an abundant harvest that increases food supply
B) the discovery of natural resources
C) reductions in business taxes
D) technological advances
E) establishment of the Occupational Safety and Health Administration (OSHA)

Question

Quizplus · Accepted Answer

The establishment of the Occupational Safety and Health Administration (OSHA) is a regulatory measure aimed at improving workplace safety and health standards. While it may have positive impacts on workers' well-being, it is not a supply shock that increases goods or services' productivity or availability, which is what supply shocks are about. The other options are beneficial supply shocks that increase output and efficiency, either by reducing the costs of production (C) or adding new resources (B) or technologies (D) to the economy. An abundant harvest (A) is a supply shock that increases the food supply, lowering prices and improving access to nutrition.

Which of These Is Not a Beneficial Supply Shock