If There Are No Trade Restrictions, a Country Will Import

question 12

Multiple Choice

If there are no trade restrictions, a country will import a particular good if _____

• A) domestic quantity supplied equals domestic quantity demanded at the world price.
• B) there is excess quantity demanded by domestic consumers at the world price.
• C) the quantity of the good demanded by domestic consumers decreases.
• D) the quantity of the good supplied by domestic producers increases.
• E) the world price of the good is higher than its domestic price.

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Definitions:

Target Denominator Level

A predetermined level of activity (such as machine-hours or labor-hours) used to allocate fixed overhead costs to individual units of production.

Volume Variance

A metric that measures the difference between the budgeted and actual volume of production or sales, often reflecting changes in demand or efficiency.

Economic Impact

The effect of an event, policy, or program on the economy of a given area, ranging from a local community to the global economy.

Denominator Level

In cost accounting, it refers to the level of activity or volume that is used to calculate the fixed cost per unit during a specific period.