Suppose in the country of Nash that the price of oranges is $8 per bushel with no trade allowed. If the world price of oranges is $10 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of oranges?
Nash will be an exporter of oranges.
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When there is an expansionary gap, inflation will ________, in response to which the Federal Reserve will ________ real interest rates, and output will ________.
A. decline; lower; expand B. increase; raise; decline C. decline; lower; decline D. decline; raise; decline
The ________ determines the supply of money
A) Federal Reserve B) banking system C) President D) Congress
What is the average cost per unit for producing 3 units? a. 200. b. 260. c. 70
d. 110.
Figure 3-11
In , suppose D1 and S1 indicate initial conditions in the market for kitchen cabinets. Which of the following would tend to cause the supply curve to shift from S1 to S2?
a.
the invention of "folding" plates and cups that take up substantially less storage space in the kitchen
b.
a decrease in consumer income
c.
a decrease in the price of wood, a resource used to produce kitchen cabinets
d.
an increase in the price of steel hinges, a resource used to produce kitchen cabinets