If the price of a good in a closed economy is greater than the world price, then if the country opens its markets to world trade the country will be a ________ of that good.
A. net exporter
B. producer
C. importer and exporter
D. net importer
Answer: D
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COLA clauses are usually based on the
a. CPI. b. PPI. c. implicit price deflators. d. level of unemployment.
The aggregate demand curve
a. slopes upward. b. slopes downward. c. is perfectly vertical. d. is perfectly horizontal.
Which of the following represents a problem with using per capita GDP to compare standard of living between less-developed and industrially advanced countries?
A. GDP per capita does not take into account differences in population between countries. B. GDP is particularly difficult to measure in industrially advanced countries because a much larger percentage of economic activity occurs outside of officially measured market activity than in less-developed countries. C. GDP per capita will overstate the prevailing standard of living for the average person in countries with extreme levels of income inequality. D. GDP per capita and other quality of life measures are not correlated.
Which of the following is TRUE?
A. Price discrimination guarantees that the monopolist will make a profit. B. Price discrimination occurs when there are differences in prices that reflect differences in marginal cost. C. Monopoly results in a higher quantity of output being sold compared with perfect competition. D. Charging all customers the same price when costs vary can actually be a case of price discrimination.