The world price of a commodity will settle at the level where
a. supply and demand are equal within each country
b. the excess demand of the importing country is just equal to the excess supply of the exporting country.
c. the excess demand in the exporting country is equal to the excess demand in the importing country.
d. there is no excess demand in the exporting country.
b
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Average costs curves initially fall
a. Due to declining average fixed costs b. Due to rising average fixed costs c. Due to declining marginal costs d. Due to rising marginal costs
The purchasing power of money and the price level vary:
A. inversely. B. directly during recessions but inversely during inflations. C. directly but not proportionately. D. directly and proportionately.
A good that takes up a very large percentage of the consumer's budget will tend to have
a. an elastic demand. b. a perfectly elastic demand. c. an inelastic demand. d. an upward-sloping demand curve. e. very many substitutes.
A major difference between tariffs and import quotas is that
a. tariffs create deadweight losses, but import quotas do not. b. tariffs help domestic consumers, and import quotas help domestic producers. c. tariffs raise revenue for the government, but import quotas create surplus for those who get the licenses to import. d. All of the above are correct.