This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
According to the graph shown, if this economy were to engage in free trade, the good would:
A. be exported.
B. no longer be produced domestically.
C. be imported.
D. not be imported or exported and only be produced domestically.
Answer: C
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James used $250,00 . from his savings account that paid an annual interest of 15% to purchase a hardware store. After one year, James sold the business for 320,000 . His accountant calculated his profit to be:
a. $320,000 b. $70,000 c. $282,500 d. $32,500
How does the form that government spending takes affect resource allocation between public goods and private goods?
Ninth National Bank holds $200 million in checkable deposits and $18,000,000 in total reserves. With a required reserve ratio of 8 percent, how much in excess reserves is Ninth National holding?
A) $1,440,000 B) $218,000,000 C) $17,440,000 D) $16,000,000 E) $2,000,000
Competition from substitute goods is more of a threat when switching costs are high
Indicate whether the statement is true or false