Table 34-4 Table 34-4 Presents the Demand and Supply

question 218

Multiple Choice

Table 34-4 Table 34-4 presents the demand and supply schedules for television sets in Japan and the United States. If Japan and the United States trade with each other, which country will export television sets and how many?

• A)Japan will export 20,000 television sets to the United States.
• B)Japan will export 30,000 television sets to the United States.
• C)The United States will export 20,000 television sets to Japan.
• D)The United States will export 40,000 television sets to Japan.

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Definitions:

Moral Hazard

The risk that a party to a transaction has not entered into the contract in good faith, or has an incentive to take unusual risks in a desperate attempt to earn a return before the contract settles.

Contract Changes

Amendments or modifications to the terms and conditions of an existing agreement.

Behavior Cost

The non-financial costs associated with actions or decisions, including effort, time, and opportunity costs that impact individuals' or companies' behaviors.

Market Signal

Information that is passed on to the market which, intentionally or unintentionally, conveys messages to buyers and sellers.