Tobacco Production Is One of the More Heavily Subsidized Industries

question 57

Multiple Choice

Tobacco production is one of the more heavily subsidized industries in the United States.Suppose that as a result of intense lobbying from health-related concerns,Congress repeals the tobacco firms' subsidies.Which of the following scenarios would likely occur?

• A)The tobacco firms' supply curve would shift rightward,as it would now be cheaper to produce each level of output.
• B)The tobacco firms' supply curve would shift leftward,since it would now cost more to produce each level of output.
• C)The tobacco firms would not experience any shift in their supply curves;subsidies don't affect output.
• D)There would be a movement along the supply curve for tobacco,but the supply curve would not shift.

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Definitions:

Figurine

A small ornamental sculpture representing a human, deity, or animal, often made from ceramic, metal, or stone.

Goddess Tlaltecuhtli

An Aztec deity representing the earth, often depicted in art as a fearsome figure associated with creation and sustenance.

Great Temple

Typically refers to a significant religious building or structure in various cultures, often dedicated to a major deity or serving as a central place of worship.

Tenochtitlán

The capital city of the Aztec Empire, located on an island in Lake Texcoco, in what is now Mexico City, known for its complex urban design and significant temples.