The Complementary Nature of Economic Flows Internationally, Whereby Imports Stimulate

question 77

Multiple Choice

The complementary nature of economic flows internationally, whereby imports stimulate exports and vice versa, is called ________ and is one argument for free trade among nations.

• A) the balance of trade
• B) countertrade
• C) exchange trade
• D) the trade feedback effect
• E) global market trading

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Definitions:

Quantity Supplied

The amount of a good or service that producers are willing and able to sell at a given price over a specified period.

Quantity Demanded

The specific amount of a good or service that consumers are willing to purchase at a given price over a specific period of time.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a specific price, holding all else constant.

Equilibrium Quantity

The quantity of goods supplied that is equal to the quantity demanded at the market equilibrium price.