If other factors remain unchanged, technological progress in producing good X definitely will lead to
A) an increase in the market clearing price of good X and a decrease in the equilibrium quantity of good X.
B) an increase in both the market clearing price and the equilibrium quantity of good X.
C) a decrease in the market clearing price of good X and an increase in the equilibrium quantity of good X.
D) a decrease in both the market clearing price and the equilibrium quantity of good X.
C
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If a team from the NFC wins the Superbowl, we can accurately predict
a. the stock market will end the year higher than it started. b. the stock market will end the year lower than it started. c. the stock market will rise, then fall, and end the year unchanged. d. nothing about future stock prices.
Some prescription drugs sell for more in the United States than they do in other countries. Which of the following statements about this issue is most likely to be true?
a. Drug companies are engaging in price discrimination, and this practice certainly reduces global social welfare. b. Global social welfare could be improved if the price in the United States were reduced to the price charged in other countries. c. Global social welfare could be improved if the price in the other countries were increased to the price charged in the United States. d. Drug companies are engaging in price discrimination, but this might improve global social welfare if it gives more people access to the drugs.