If There Are No Trade Restrictions, a Country Will Import

question 65

Multiple Choice

If there are no trade restrictions, a country will import a particular good if

• A)domestic quantity supplied equals domestic quantity demanded at the world price
• B)there is excess domestic quantity demanded at the world price
• C)world quantity supplied is less than world quantity demanded
• D)world quantity supplied is greater than world quantity demanded
• E)domestic quantity supplied is greater than domestic quantity demanded at the world price

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Definitions:

Economic Rents

Earnings that exceed the minimum amount necessary to keep a factor of production in its current use.

Aggregate Production

The total output of goods and services produced by an economy over a specific time period.

Reallocation

denotes the process of distributing or assigning resources, roles, or tasks differently in response to changes in conditions, preferences, or objectives.

Demand for Land

The demand for land refers to the desire, backed by purchasing power, for the use of land resources for residential, commercial, or agricultural purposes.