This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According the graph shown, if this economy were open to free trade, it would:
A. export this good, because the world price is greater than the domestic price.
B. import this good, because the world price is greater than the domestic price.
C. import this good, because the domestic price is greater than the world price.
D. export this good, because the domestic price is greater than the world price.
Answer: C
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A shift in the demand curve will occur when
A. suppliers place more goods on the market. B. the price of a good rises. C. consumers want to buy more or less than before at a given price. D. the price of the good falls.
In the table above, which case has the lowest relative price for a hamburger?
A) case A B) case B C) case C D) All three cases have an equal relative price for a hamburger.
What is the significant feature of a preferential arrangement?
What will be an ideal response?
An increase in the market clearing exchange value of the home nation's currency in terms of the currency of another nation is a home currency
A) appreciation. B) depreciation. C) devaluation. D) revaluation.