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:

Trustworthiness

The quality of being reliable, honest, and deserving of trust.

Intelligence/Skill

The capacity for learning, understanding, and applying knowledge and abilities to achieve specific tasks or solve problems.

Cultural Sensitivity

An awareness of and willingness to understand why people of another culture act as they do; a leadership quality requiring patience, willingness to learn, and flexibility, resulting in a bond of trust and respect among diverse people.

Diversity

Represents the range of differences among people, including but not limited to culture, race, gender, age, and beliefs.