If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price, which of the following conclusions can be made?
What will be an ideal response?
The country will be an importer of the good
You might also like to view...
The commercial banking system has excess reserves of $200,000. Then new loans of $800,000 are subsequently made, and the system ends up just meeting its reserve requirements. The required reserve ratio must be
A. 30%. B. 10%. C. 25%. D. 20%.
Fill in the blank: According to your text, ________ may be the most powerful force behind economic growth
A) minimum wages B) unionization C) technical innovation D) a well-motivated bureaucracy E) price compression
A producer can raise profit by expanding output if his:
a. marginal revenue is equal to marginal cost. b. marginal revenue is less than marginal cost. c. marginal revenue is negative. d. marginal cost is negative. e. marginal revenue is greater than marginal cost.
The text refers to OPEC as a classic example of a cartel. OPEC is a group of countries that collude to control prices and output in the _______ industry(ies)
a. agriculture b. engineering and computer c. airline d. oil e. machinery