An open economy produces most of the goods and services that it needs, with few imports and exports
a. True
b. False
Indicate whether the statement is true or false
False
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The demand for cars in a certain country is given by: D = 20,000 - P, where P is the price of a car. Supply by domestic car producers is: S = 5,000 + 0.5P. If this economy opens to trade while the world price of a car is $6,000, and the government imposes a quota allowing 3000 cars to be imported, then the winners are ________.
A. domestic consumers B. domestic producers and the government C. domestic consumers and import permit holders D. domestic producers and import permit holders
What makes the Lewis model a "development" model rather than a "growth" model? What insights on development can be derived from the model?
What will be an ideal response?
If the price of garbage removal rises, people will
a. demand a lesser quantity of garbage removal. b. take more waste to recycling centers. c. repair broken items rather than throwing them out. d. All of the above are correct.
When a firm experiences continually declining average total costs,
a. the firm is a price taker. b. society is better served by having one firm supply the product. c. the firm will earn higher profits than if average total costs are increasing. d. All of the above are correct.