If This Is an Open Economy, the Price of a Car

question 2

Multiple Choice

If this is an open economy, the price of a car will be ________.

• A)$6,000/car
• B)$8,000/car
• C)$10,000/car
• D)$14,000/car

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Definitions:

Mount Pelée

An active volcano on the island of Martinique, known for its catastrophic eruption in 1902 that destroyed the town of Saint-Pierre.

Pyroclastic Flows

Hot, fast-moving and deadly mixtures of gas, ash, and volcanic matter that flow down the sides of a volcano during an eruption.

Lahars

Volcanic mudflows or debris flows that occur when volcanic materials mix with water during an eruption or from heavy rainfall on loose volcanic deposits.

Expectancy Model

A psychological theory stating that an individual's motivation is based on their expected outcome of a specific behavior or action.