Suppose That Good X Is One of the More Heavily

question 155

Multiple Choice

Suppose that good X is one of the more heavily subsidized industries in the United States.Suppose further that as a result of intense lobbying from health-related concerns,Congress repeals the subsidies on good X.Which of the following scenarios would likely occur?

• A) The supply curve for good X would shift rightward,as it would now be cheaper to produce each level of output.
• B) The supply curve for good X would shift leftward,since it would now cost more to produce each level of output.
• C) There would be no shift in the supply curve for good X; subsidies don't affect output.
• D) There would be a movement along the supply curve for good X,but the supply curve would not shift.

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Definitions:

Long-term Potentiation

A lasting enhancement in signal transmission between two neurons resulting from their simultaneous stimulation, often considered a cellular mechanism for learning and memory.

Synaptic Connections

The points at which nerve cells (neurons) connect and communicate with each other through neurotransmitters.

Vicarious Conditioning

Learning that occurs by observing the reactions of others to an environmental stimulus rather than through direct experience.

Tabula Rasa

A theory suggesting that individuals are born without built-in mental content, and all knowledge comes from experience or perception.