If a country allows free trade and its domestic price for a given good is lower than the world price, then it will import that good
a. True
b. False
Indicate whether the statement is true or false
False
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Refer to the table above, which gives five points on a nation's PPF. The production of 7 units of X and 28 units of Y is
A) impossible given the available resources. B) possible but leaves some resources less than fully used or misallocated. C) on the production possibilities frontier between points c and d. D) on the production possibilities frontier between points b and c.
Suppose interest rates are kept very low for a long time such that there is a spike in the amount of lending. Everything else held constant, this could cause ________ bubble
A) an irrational exuberance B) a credit-driven C) a stock D) a debt-driven
Marginal physical product is
a. the increase in input usage resulting from an increase in revenue. b. the same as marginal revenue product. c. equal to average physical product when a monopoly firm is in equilibrium. d. the increase in output stemming from a one-unit increase in input.
The selling power of money is the rate at which it exchanges for goods and services
Indicate whether the statement is true or false