The Diagram Below Shows the Domestic Demand and Supply Curves

question 42

Multiple Choice

The diagram below shows the domestic demand and supply curves in the market for newsprint in Paperland.
FIGURE 33- 5
-Governments often implement programs designed to encourage research and development. Such programs may change the comparative advantage of that country because

• A)they are expected to change the endowments of each country.
• B)increases in research and development always lead to an increase in imports.
• C)they will raise the costs of production of the trading partners.
• D)they are expected to lead to improvements in technology.
• E)the opportunity costs of exported products cannot change.

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Definitions:

Guilty

A legal term for a person determined to have committed a crime or a feeling of responsibility for wrongdoing.

Warn

To inform someone of possible dangers or problems, or to advise caution.

Shape Constancy

The perceptual phenomenon where the perceived shape of an object remains constant despite changes in the angle of observation or illumination.

Ponzo Illusion

A visual illusion where two horizontal lines of identical length appear different in length because of their background cues, demonstrating depth perception.