People Are Likely to Respond to a Policy Change

question 73

Multiple Choice

People are likely to respond to a policy change

• A)only if they think the policy is a good one.
• B)only if the policy change changes the costs of their behavior.
• C)only if the policy change changes the benefits of their behavior.
• D)if the policy changes either the costs or benefits of their behavior.

---

Definitions:

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Exports

Goods or services sent from one country to another for sale or trade.

Wheat

A cereal grain that is a staple food in many parts of the world, used to make products like flour, bread, and pasta.

Cattle

Large domesticated bovines that are raised for their meat (beef), milk, or as draft animals.