Refer to the graph below showing the domestic demand and supply curves for a specific product in a hypothetical nation called Econland. If the world price for this product is $2.00, then Econland will:
A. Export 200 units
B. Export 400 units
C. Import 200 units
D. Import 400 units
A. Export 200 units
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According to supply-side economics, a cut in taxes will affect total tax revenue, because ________
A) the level of productivity should fall precipitously with a tax cut B) a tax cut will be followed by an even larger decrease in government spending C) of the resulting increase in saving D) of the positive impact on the level of income
A horizontal demand curve indicates:
A. a perfectly inelastic demand. B. quantity demanded will drop to zero if the price increases by any amount. C. price elasticity is 1. D. price is not important in this market.
Which of the following statements is true about information transfer within an organization?
a. More information is always better. b. People at higher levels cannot add to the quality of a decision when an employee lower in the order has all the information and is able to take the decision on his/her own. c. Decision relating to a particular department in an organization usually depends only on the information provided from that department. d. Optimal amount of information removes the risk of errors in decision-making.
As a share of total national income, government spending generally has
A) been constant over the last 50 years. B) increased over the last 50 years. C) decreased over the last 50 years. D) increased until 20 years ago, and then decreased steadily.