In a Market That Moves from a Situation of No

question 83

Multiple Choice

In a market that moves from a situation of no trade to a situation where a good is imported, the price of the good ________ and the quantity produced by the domestic industry ________.

• A)rises; increases
• B)falls; decreases
• C)does not change; increases
• D)does not change; decreases
• E)rises; does not change

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Definitions:

Preincorporation Contract

An agreement made by the incorporators or promoters of a company on behalf of the company before it has been legally formed.

Liable

Legally responsible or obligated to compensate for harm, loss, or damage caused by one's actions or omissions.

Capitalize

The accounting practice of recording a cost or expense on the balance sheet for the purposes of delaying full recognition of the expense over time through depreciation or amortization.

Equity Securities

Financial instruments that represent ownership interest in a company, such as stocks.