Refer to the Figure Below to Answer the Following Questions

question 116

Multiple Choice

Refer to the figure below to answer the following questions.

Figure 7.2.1
The figure shows the market for shirts in Canada, where D is the domestic demand curve and S is the domestic supply curve. The world price is $20 per shirt.
-In Figure 7.2.1, with international trade, Canada ________ million shirts per year.

• A)imports 32
• B)imports 48
• C)exports 16
• D)exports 32
• E)imports 16

---

Definitions:

Resources Allocation

The process of assigning available resources among various uses in an economy or organization to maximize the efficiency of those resources.

Firms Efficiency

The degree to which a company utilizes its resources effectively to produce goods and services and maximize profit.

Pareto Optimality

A situation where resources are distributed in such a way that improving the situation of any single person would lead to the detriment of at least one other person.

Voluntary Exchange

An economic transaction where parties trade goods or services by mutual agreement without coercion.