If Country A exports a good to Country B, the prices of the good in Country A will ______ and the prices of the good in Country B will ________
a. increase; increase
b. decrease; decrease
c. increase; decrease
d. decrease; increase
e. stay the same; increase
C
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Refer to Figure 8.1. If each player cooperated with one another rather than playing their dominant strategies, the economic pie would grow by
A) $0. B) $280. C) $490. D) $560.
In the above figure, if the market price is $10, the firm
A) produces 10 units. B) produces 12 units. C) shuts down operations. D) produces 11 units.
In long-run equilibrium for a competitive firm, economic profits:
A. will be positive. B. will be negative. C. will be zero. D. may be positive, negative, or zero.
Which of the following statements is true?
A) As output increases, average fixed cost becomes smaller and smaller. B) Average fixed cost does not change as output increases. C) The marginal cost curve intersects the average fixed cost curve at its minimum point. D) When marginal cost is greater than average fixed cost, average fixed cost increases.