Refer to the table above. If the world price for a pair of trousers is $12, then which of the following statements is true?
A) All the four countries will export trousers.
B) All the four countries will import trousers.
C) Country A and Country B will import trousers, whereas Country C and Country D will export trousers.
D) Country C and Country D will import trousers, whereas Country A and Country B will export trousers.
D
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A sole proprietorship is limited to how many owners?
A) 1 B) 2 C) 10 D) There is no limit to the number of owners.
Whether a firm stays in business or shuts down depends heavily on the concept of
A. market share. B. economic profit. C. actual profit. D. concentration ratios.
If market signals result in pollution beyond the optimal level, then
A. The economy experiences government failure. B. The government is allocating resources inefficiently. C. A laissez faire approach will reduce the level of pollution. D. The market mechanism has failed to achieve efficiency.
If the demand for money depends on the interest rate, then a ________ in the money supply will increase nominal GDP by ________.
A. 5% decrease; more than 5% B. 5% increase; less than 5% C. 5% decrease; exactly 5% D. 5% increase; more than 5%