If a tax (paid by producers) on a good is reduced, this would
A. move its supply curve to the right.
B. move its supply curve to the left.
C. cause a movement along the supply curve to a (lower price, lower quantity) point.
D. cause a movement along the supply curve to a (higher price, higher quantity) point.
Answer: A
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Comparative advantage in production of a good occurs
A. when a country can produce that good using fewer resources than could other countries. B. when a country can produce that good at a greater opportunity cost than could other countries. C. when a country can produce that good at a lower opportunity cost than could other countries. D. when a country has a greater supply of natural resources required to produce that good, compared to other countries.
Suppose that today, consumers expect the price of bottled water to double in the future. Then today the bottled water's
A. supply curve will shift to the right. B. supply curve will shift to the left. C. demand curve will shift to the right. D. demand curve will shift to the left.
Refer to Figure 7-4. If consumers paid the full price of medical services, the price they would pay is
A) $25. B) $40. C) $55. D) >$55.
Lori, who currently owns stock in four companies, has decided to expand her portfolio by purchasing stock in virtually every company that sells stock. In doing so, Lori will
a. increase the risk of her portfolio. b. decrease some, but not all, of the risk of her portfolio. c. decrease all of the risk of her portfolio. d. leave the risk of her portfolio unchanged from its present level.