When the Price Level Is Low, Resulting in Domestic Goods

question 140

Multiple Choice

When the price level is low, resulting in domestic goods being cheaper than imported foreign goods,

• A) consumers hold more money.
• B) consumers spend less.
• C) the demand for domestic goods will increase.
• D) there will be a reduction in import tariffs.

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Definitions:

Government

The system or group of people governing an organized community, often a state, including institutions and officials that make and enforce laws.

Fuel Economy Standards

Regulations set by the government to improve the average fuel efficiency of cars and light trucks.

Market Economy

A system where the prices of goods and services are determined by supply and demand, rather than by government intervention.

Employment Discrimination

Unfair treatment of employees based on race, gender, age, religion, nationality, disability, or sexual orientation rather than job performance or qualifications.