The Price of Domestically Produced Wine in the United States

question 16

Multiple Choice

The price of domestically produced wine in the United States is $15 per liter and the price of the same wine produced in Italy is 12 euros per liter.If the exchange rate is $.96 to the euro and no tariffs or quotas affect the good

• A) the United States will export wine and the U.S. price of wine will rise.
• B) the United States will import wine and the U.S. price of wine will rise.
• C) Italy will export wine and the Italian price of wine will rise.
• D) Italy will import wine and the Italian price of wine will rise.
• E) both countries will produce their own wine and no trade will occur.

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Definitions:

Groupthink

A phenomenon where the desire for group consensus and cohesiveness leads to poor decision-making processes and outcomes.

Maintaining Harmony

The act of keeping relationships or environments peaceful and cooperative.

Critically Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.

Storming Stage

A phase in group development characterized by conflict and competition as members assert their opinions and vie for positions within the group.