What Is the Most Likely Effect of Reducing Costly Regulations

question 4

Multiple Choice

What is the most likely effect of reducing costly regulations on the supply curve for a good?

• A)The supply curve for the good will shift to the left.
• B)The quantity supplied of the good will reduce.
• C)The supply curve for the good will shift to the right
• D)The supply curve for the good will not be affected.
• E)The quantity supplied of the good will increase.

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Definitions:

International Trade

The exchange of goods, services, and capital across international borders or territories.

Free Movement

The right or ability to travel, reside, and work in different parts of a country or between countries without undue restriction or regulation.

Investment

The action of allocating resources, usually money, with the expectation of generating an income or profit.

State Policy

Strategies, regulations, laws, or guidelines formulated and implemented by a government to achieve specific economic, social, or political objectives.