If a subsidy is provided to produce good X, this will shift the
A. demand curve for X to the right.
B. supply curve for X to the left.
C. demand curve for X to the left.
D. supply curve for X to the right.
Answer: D
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Indicate whether the statement is true or false
In a two good, two-country world, a country has a comparative advantage in any good for which it has a:
a. lower absolute cost than the other country. b. lower opportunity cost than the other country. c. higher absolute cost than the other country. d. higher opportunity cost than the other country.
Which one of the following policies would not reduce water use?
a. Full marginal-cost pricing b. Microirrigation technology c. Reusing wastewater for industrial uses d. Subsidizing irrigation systems e. Removing water subsidies
Frictional unemployment may be economically beneficial if:
A. the social costs are limited to smaller tax revenues collected. B. its psychological costs are borne only by the unemployed worker. C. it leads to a better match between worker and job. D. losses in economic output are small.