If foreign producers can supply an infinite amount of tradable goods at the world price, this would imply that the world supply curve is:
A. horizontal.
B. upward-sloping.
C. downward-sloping.
D. vertical.
Answer: A
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In the figure above, an economy would grow fastest if it produces at point
A) A. B) B. C) C. D) D.
What is the most likely explanation for how the percentages are allocated to each category of the CPI?
a. They reflect the proportion of income the average American spends on that category.
b. They reflect the relative vulnerability of each category to inflation.
c. They reflect the relative expensiveness of the items in each category.
d. They reflect the proportion needed to keep the rate of inflation stable from year to
year.
Which of the following scenarios describes how domestic consumers are affected when sugar is exported and sold domestically at the world price?
a. Prices for sugar are higher. b. Prices for sugar are lower. c. Sugar is no longer available. d. Prices for all goods in the economy rise.
Short-run contractions and expansions in economic activity are called
A. the business cycle. B. recessions. C. deficits. D. expansions.