Which of the following is an example of a beneficial supply shock?
A) an embargo on trade in oil
B) a tornado
C) a drought
D) a new invention

Question

Which of the following is an example of a beneficial supply shock?  
A) an embargo on trade in oil 
B) a tornado 
C) a drought 
D) a new invention

Quizplus · Accepted Answer

A new invention can increase productivity and lower the cost of production, leading to a positive impact on the supply side of the economy. This is an example of a beneficial supply shock. Embargo on trade in oil, tornadoes, and droughts can disrupt supply chains and cause a decrease in output, resulting in a negative supply shock.

Which of the Following Is an Example of a Beneficial