Refer to the figure above. If the economy of Barylia opens up to free trade, then which of the following statements is true?
A) Barylia will start importing calculators.
B) Barylia will start exporting calculators.
C) Domestic consumers will purchase a greater quantity of calculators than before.
D) The production and purchase of calculators within Barylia will remain the same as before.
B
You might also like to view...
Certain goods are related such that an increase in the price of one good decreases the quantity demanded of the other. These goods are
a. complements. b. substitutes. c. luxury goods. d. competing goods.
A positive externality will cause a market to produce
a. more than is socially desirable. b. less than is socially desirable. c. the socially optimal equilibrium amount. d. more than the same market would produce in the presence of a negative externality.
Which of the following is usually a durable good?
A. A unit of labor B. The interest rate C. A depletable resource D. A capital good
Supply might ___________________because of a decrease in the cost of inputs.
Fill in the blank(s) with the appropriate word(s).