Refer to the Graph, Which Shows the Import Demand and Export

question 173

Multiple Choice

Refer to the graph, which shows the import demand and export supply curves for two nations that produce a certain product. In this two-nation model, the equilibrium world price and quantity will be

• A)A and Q₂.
• B)B and Q₄.
• C)C and Q₂.
• D)D and Q₄.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, used to generate wealth through investment.

Labor

Refers to human efforts used in the production of goods and services.

Cost Of Capital

The minimum profit percentage a corporation needs to achieve on its ventures to sustain its market value and draw in capital.

Cost Of Labor

The total sum of all compensation that a business must pay to its employees for a set period or on a given project.