Montesia is a country that produces kiwis. After the market for kiwis in Montesia is opened to international trade, there is a decrease in the domestic quantity supplied of kiwis and an increase in the domestic quantity demanded of kiwis. Montesia should:
a. import kiwis
b. export kiwis.
c. not participate in trade.
d. impose a tariff on kiwis.
a
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Which of the following statements best describes the trading characteristics of the United States and Japan?
a. The United States and Japan are extremely large economies that have comparatively many nearby trading partners, and quite high levels of trade by world standards. b. The United States and Japan are extremely large economies that have comparatively many nearby trading partners, and quite low levels of trade by world standards. c. The United States and Japan are extremely large economies that have comparatively few nearby trading partners, and quite high levels of trade by world standards. d. The United States and Japan are extremely large economies that have comparatively few nearby trading partners. Both countries actually have quite low levels of trade by world standards.
According to the text, one of the ways to solve the public good problem is
A. finding ways of forcing people to pay for the good. B. not to provide the good at all. C. to allow private firms in free markets to provide the good for a fee. D. for the government to provide the good for free by using a compulsory tax.
A point on a nation's production possibilities curve represents
A. An undesirable combination of goods and services. B. Combinations of production that are unattainable, given current technology and resources. C. The full employment of resources to achieve a particular combination of goods and services. D. Levels of production that will cause both unemployment and inflation.
According to the U.S. Secret Service, approximately $2.6 billion of U.S. paper currency in circulation is counterfeit. The U.S. government is continually adding security features to its paper currency to help make counterfeit money easier to detect. If counterfeit currency remained undetected, a vast increase in the supply of counterfeit U.S. currency would:
A. decrease aggregate demand in the short run. B. lead to inflation. C. reduce the amount of M1. D. lower the nominal income of the average U.S. worker.