The following graph shows the market equilibrium for corn in the United States. If the world price of corn is $2 and there are no trade restrictions, the United States will:
What will be an ideal response?
produce 3,000 bushels of corn, consume 7,000 bushels of corn, and import 4,000 bushels of corn.
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Globalization ________ the wages of workers in the exporting industries and ________ the wages of workers in the import-competing industries.
A. raises; raises B. lowers; raises C. raises; lowers D. raises; does not change
Which of the following does not determine a good's price elasticity of demand?
a. the time interval considered b. the number of substitutes there are for the good c. expenditures on the good as a percentage of the total consumer budget d. the slope of the demand curve e. the more of a luxury a particular good is
Answer the question on the basis of the following data. All figures are in billions of dollars. Proprietor's Income 20 Compensation of Employees 300 Consumption of Fixed Capital 15 Gross Investment 80 Rents 10 Interests 20 Exports 30 Imports 50 Corporate Profits 25 Taxes on Production and Imports 5 Net Foreign Factor Income 0 Statistical Discrepancy 0 Refer to the above data. National income is:
a) $395. b) $380. c) $375. d) $360.
By opening up to foreign markets, two things that countries generally experience are:
A. gaining access to a wide array of new products and saving money through access to cheaper goods. B. saving money through access to cheaper goods and finding new customers who generally pay less for their products. C. increase in negative trade outcomes with that nation and finding customers who generally pay less for their products. D. gaining access to a wide array of new products and increase in negative trade outcomes with that nation.