Refer to the Information Provided in Figure 33

question 286

Multiple Choice

Refer to the information provided in Figure 33.3 below to answer the question(s) that follow. Figure 33.3
-Refer to Figure 33.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. If shoes are a normal good and income in this country rises, then we would expect

• A) the number of pairs of shoes imported into this country to increase.
• B) the number of pairs of shoes imported into this country to decrease.
• C) the number of pairs of shoes exported from this country to increase.
• D) the number of pairs of shoes exported from this country to decrease.

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Definitions:

Balance of Trade

The difference between a country's exports and imports of goods, indicating the net earnings from trade.

Income Disparities

The difference in earnings among individuals or groups, often highlighting the economic inequality within a society.

Current Account

A component of a country's balance of payments that includes the trade balance, net primary income, and net secondary income transactions with the rest of the world.

Balance of Trade

The net difference in value between a country's exports and imports over a certain period.