(Last Word) A market-based system of buying and selling human organs for transplant would:
A. reduce total health care spending.
B. create a surplus of organs.
C. increase the quantity of organs available for transplant.
D. reduce the price of organs.
Answer: C
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Currency traders expect the dollar to appreciate. What impact will this have on equilibrium in the foreign exchange market?
A) The dollar will appreciate, and the equilibrium quantity of dollars will increase. B) The dollar will depreciate, and the equilibrium quantity of dollars exchanged will decrease. C) The dollar will appreciate, and the equilibrium quantity of dollars will decrease. D) The dollar will appreciate, and the change in the equilibrium quantity of dollars exchanged cannot be determined.
If a Pigovian tax is levied on producers, the supply curve will shift:
A. straight up, decreasing quantity. B. straight down, decreasing quantity. C. straight up, increasing quantity. D. straight down, increasing quantity.