After a Nation Starts Importing a Good from Overseas,the Domestic

question 99

Multiple Choice

After a nation starts importing a good from overseas,the domestic price of the good

• A) falls.
• B) stays the same.
• C) rises.
• D) might change, but more information about what the country exports is needed to determine if the price rises, falls, or does not change.
• E) might change, but more information about what else the country imports is needed to determine if the price rises, falls, or does not change.

---

Definitions:

Complementary

Products or services that are used together, where the use of one increases the value or demand for the other.

Productivity

The measure of the efficiency of production, often quantified as the ratio of outputs produced to inputs used in the production process.

Output Effect

The output effect is the impact on total revenue generated by selling an additional unit of a product or service, assuming the price remains constant.

Production Costs

The total expenses incurred in the process of creating and manufacturing a product.