Refer to the information provided in Figure 33.3 below to answer the question(s) that follow.
Figure 33.3Refer to Figure 33.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. Now domestic production costs fall so that the equilibrium domestic price of a pair of shoes is $70. This would cause
A. the number of pairs of shoes imported into this country to increase.
B. the number of pairs of shoes exported from this country to increase.
C. the number of pairs of shoes exported from this country to decrease.
D. the number of pairs of shoes imported into this country to decrease.
Answer: D
You might also like to view...
Vertical relationships can increase profits through
a. preventing firms from evading regulation b. creating a double-markup problem c. better aligning the incentives of manufacturers and retailers d. preventing price discrimination
Political factors influence international trade because
a. foreign trade always involves at least two governments. b. foreign governments are much less concerned with the welfare of citizens in other countries. c. foreign governments often establish impediments to free international trade. d. All of the above are correct.
Assume point A on a linear production possibilities curve represents the combination of 12 coffees and 3 cappuccinos, and point B represents 3 coffees and 6 cappuccinos. Suppose coffees are on the vertical axis and cappuccinos are on the horizontal axis. The opportunity cost of a cup of coffee is:
A. 3 cappuccinos. B. 1/3 of a cappuccino. C. 9 cappuccinos. D. 6 cappuccinos.
Two years ago, when her plant closed, Sue Ann McCoy was earning $18 an hour as an assembly line worker. She is unwilling to accept a large pay cut and has been out of work for three years. She is __________ unemployed.
A. frictionally B. structurally C. cyclically D. seasonally