Which of the Following Statements Is True

question 128

Multiple Choice

Which of the following statements is true?

• A) If the domestic price of a good in a country is higher than the world price, the country will become an exporter of the good.
• B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good.
• C) If the domestic price of a good in a country is higher than the world price, the country will become an importer of the good.
• D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.

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Definitions:

Binder Agreement

A temporary insurance contract providing coverage until a formal policy is issued.

Insurance Application

A document that contains an individual's or entity’s request for insurance coverage, detailing the specifics of the coverage sought.

Effective Date

The date on which insurance takes effect.

Insurance Policy

A contract between an individual or entity and an insurance company, detailing the terms for the payment of claims in exchange for premiums paid by the insured.