Based on this graph, which of the following would happen if P1 drops below the line where P is now?
a. The farmer would increase her profit.
b. The farmer would shut down.
c. The farmer would maintain equilibrium.
d. The farmer would hire more employees.
b. The farmer would shut down.
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In international trade the term "dumping" means
A) price discrimination by domestic producers. B) selling goods in a foreign market for a price less than on the home market. C) selling goods in a home market for a price less than on the foreign market. D) selling goods on the black market to avoid paying taxes.
Brazil only exports coffee and its price is $15 . It only imports crackers and its price is $10 . Brazil's terms of trade is
a. 15 b. 150 c. 67 d. 167 e. 100
Ethan purchases a new house for $170,000 . Ethan's purchase of the house contributes $170,000 to which magnitude in the identity Y = C + I + G?
a. C b. I c. G d. None of the above are correct.
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price for that good.
According to the graph shown, the amount bought by domestic consumers when there is open trade for this good is:
A. 1150 B. 250. C. 1500. D. 500.