After a Nation Starts Importing a Good from Overseas, the Domestic

question 12

Multiple Choice

After a nation starts importing a good from overseas, the domestic price of the good

• A)rises.
• B)stays the same.
• C)falls.
• D)might change, but more information about what the country exports is needed to determine if the price rises, falls, or does not change.
• E)might change, but more information about what else the country imports is needed to determine if the price rises, falls, or does not change.

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Definitions:

Noncumulative

Describes dividends on preferred stock that, if not paid in the year they are due, do not accumulate and are not required to be paid in later years.

Par Value

A terminology indicating the official value of a security as outlined in the document at the time of its issue.

Dividend

A distribution of earnings given by a company to its stockholders, typically from its profits.

Par Value

The face value of a bond or stock as stated by the issuing company, often the minimum amount the security can be sold for.