Assuming All Else Is Held Constant, Which of the Following

question 28

Multiple Choice

Assuming all else is held constant, which of the following statements is correct?

• A) If a supply curve moves to the left this will lead to a shortage.
• B) If a demand curve moves to the right this will lead to a surplus.
• C) If a supply curve moves to the left the new equilibrium price will be higher.
• D) If a demand curve moves to the left the new equilibrium price will be higher.

Calculate the total gains from specialization and trade based on comparative advantage using production possibilities data.

Understand how comparative cost differences between countries influence production specialization.

Examine the impact of domestic and world prices on import and export behaviors.

Distinguish between export supply curves and import demand curves and their implications for trade.

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Definitions:

Vitamins

Organic compounds required in small amounts for essential metabolic reactions in the body, often obtained through the diet.

Minerals

Natural, inorganic substances that are essential for various bodily functions, including building bones and making hormones.

Thyroid-Stimulating Hormone

A hormone produced by the pituitary gland that regulates the production of hormones by the thyroid gland.

Growth Hormone

A hormone produced in the pituitary gland that stimulates growth, cell reproduction, and regeneration in humans and other animals.