The nation of Openia allows free trade and exports steel. If steel exports were prohibited, the price of steel in Openia would be ________, benefiting steel ________.
a. lower, consumers
b. higher, producers
c. lower, producers
d. higher, consumers
Ans: a. lower, consumers
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It is sometime useful to view each step in the supply chain as a(n)
A) single market. B) integrated process. C) horizontal process. D) vertical process.
Consumers of the exportable product in the exporting country are most likely to gain when trade is based on
A. increasing-cost industries. B. technological differences. C. external scale economies. D. different factor endowments.
A citizen in a developing country with a currency policy of convertibility on the current account could engage in all of the following transactions except:
A. sell foreign currency resulting from the exports of manufactured t-shirts. B. sell foreign currency resulting from the sale of a U.S. treasury bond. C. purchase foreign currency in order to import a BMW. D. purchase foreign currency in order to purchase a U.S. treasury bond.
The emphasis by some economists on long-term outcomes is reminiscent of
A. Classical theory. B. Supply-side theory. C. Keynesian theory. D. None of the choices are correct.