The world price of a ton of steel is $1,000 . Before Russia allowed trade in steel, the price of a ton of steel there was $650 . Once Russia allowed trade in steel with other countries, Russia began
a. exporting steel and the price per ton in Russia remained at $650.
b. exporting steel and the price per ton in Russia increased to $1,000.
c. importing steel and the price per ton in Russia remained at $650.
d. importing steel and the price per ton in Russia increased to $1,000.
b
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Which of the following statements is TRUE?
A) Real GDP fluctuates around potential GDP. B) Potential GDP fluctuates around real GDP. C) Potential GDP is the same as real GDP. D) When all of the economy's resources are fully employed, the value of production is called real GDP.
The tables above show the marginal costs and benefits from production of paper. If the market is perfectly competitive and unregulated, the efficient level of output
A) is achieved. B) can be achieved by giving paper producers a subsidy. C) can be achieved by imposing a Pigovian tax on paper producers. D) cannot be achieved.
In the market for reserves, if the federal funds rate is between the discount rate and the interest rate paid on excess reserves, an increase in the reserve requirement ________ the ________ for reserves and causes the federal funds interest rate to
rise, everything else held constant. A) decreases; demand B) increases; demand C) increases; supply D) decreases; supply
The above figure shows Bobby's indifference map for juice and snacks. Assuming income remains unchanged, when the budget line rotates out, the expenditure on snacks
A) increases. B) decreases. C) does not change. D) Not enough information