The Net Effect of a Good's Price Increase on Total

question 13

Multiple Choice

The net effect of a good's price increase on total real income in a region is to ____ total real income if the region is a net ________,implying that total production in the region exceeds total consumption.

• A) Raise; exporter
• B) Raise; importer
• C) Lower; exporter
• D) Lower; importer

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Definitions:

Liability

A company's legal financial debts or obligations that arise during the course of business operations.

Ending Inventory

Ending Inventory is the total value of all unsold goods that a company has in its possession at the end of an accounting period.

Beginning Inventory

The value of inventory on hand at the start of an accounting period, before any purchases or production have occurred.

Sales

The total amount of a company's revenue generated from goods or services provided to customers.