Refer to the Above Diagram Pertaining to Two Nations and a Specific

question 66

Multiple Choice

Refer to the above diagram pertaining to two nations and a specific product.In equilibrium, the nation represented by lines FA and FC will:

• A)export H to the country represented by lines GB and GD.
• B)import H from the country represented by lines GB and GD.
• C)pay price F for its imports.
• D)receive price G for its exports.

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Definitions:

Long-Term Liabilities

Debts that will be repaid over a number of years, such as long-term loans and bond issues.

Face Value

The nominal or dollar value stated on a financial instrument, such as a bond or stock certificate, representing its worth if redeemed at maturity.