The Accompanying Tables Show Data for the Hypothetical Nations of Alpha

question 179

Multiple Choice

The accompanying tables show data for the hypothetical nations of Alpha and Beta. Qₛis domestic quantity supplied, and Q_d is domestic quantity demanded. At a world price of $2,

• A)Alpha will want to import 20 units of steel.
• B)Beta will want to export 20 units of steel.
• C)Alpha will want to export 20 units of steel.
• D)neither country will want to import steel.

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Definitions:

Free Trade

An economic policy that allows imports and exports between countries without tariffs, quotas, or other restrictions.

Domestic Price

The price of goods or services within a country's borders, exclusive of international factors.

World Price

The price at which goods trade on the international market, reflecting the global balance of supply and demand for those goods.

Import

Goods or services that come into a country from abroad for sale.