Refer to the accompanying figure, which shows the annual domestic supply and annual domestic demand for jeans in a small country.
If the world price of a pair of jeans is $40, and this country is open to trade with the rest of the world, then it will ________ pairs of jeans each year.
A. export 4,000
B. export 24,000
C. import 28,000
D. import 24,000
Answer: D
You might also like to view...
Both Sally and Sam receive a 10% raise in a single year. Sally increases her demand for ground beef whereas Sam decreases his demand for ground beef
A) This is impossible. B) This is only possible if Sally considers ground beef an inferior good, and Sam views it as a normal good. C) This is only possible if Sally has lower income than Sam. D) This is only possible if Sally considers ground beef a normal good and Sam views it as an inferior good.
Output per person rises when
a. the population increases faster than real GDP b. real GDP rises faster than the number of employed workers c. real GDP increases at the same rate as the population d. real GDP rises slower than the population e. real GDP rises faster than the population
Assume that the central bank increases the reserve requirement. If the nation has low mobility international capital markets and a flexible exchange rate system, what happens to the real risk-free interest rate and current international transactions in the context of the Three-Sector-Model?
a. The real risk-free interest rate falls, and current international transactions become more negative (or less positive). b. The real risk-free interest rate rises, and current international transactions become more negative (or less positive). c. The real risk-free interest rate and current international transactions remain the same. d. The real risk-free interest rate rises, and current international transactions remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
An decrease in equilibrium quantity would result from
A. an increase in demand with no change in supply. B. a decrease in supply with no change in demand. C. a decrease in demand with no change in supply. D. both a decrease in supply with no change in demand and a decrease in demand with no change in supply.