Suppose that, a country with a closed economy opens itself to international trade and becomes a net exporter. In that case, the price of that good will ________ when the economy goes from closed to open for trade.
A. decrease
B. first decrease then increase
C. increase
D. stay the same
Answer: C
You might also like to view...
Suppose when the price of a can of tuna is $1.30, the quantity demanded is 9, and when the price is $1.50, the quantity demanded is 7. Using the mid-point method, the price elasticity of demand is:
A. –1.75 B. –0.57 C. 0.57 D. 29 percent
Which of the following could lead to a decrease in worker productivity?
a. An increase in the physical capital stock b. A decrease in the number of workers c. A war that destroys an enormous amount of plant and equipment d. An increase in the physical capital stock e. A decrease in the human capital stock
How will price, output, and profit compare if firms maximize sales rather than profit?
Which of the following is NOT one of the four main arguments in favor of import-substituting industrialization (ISI)?
A. The argument of using cheap and convenient market information B. The infant industry argument C. The argument of using skilled labor D. The developing government argument