A Country Will Import a Good Only If

question 89

Multiple Choice

A country will import a good only if

• A)there is excess domestic quantity supplied at the world price
• B)domestic quantity supplied is greater than world quantity supplied
• C)domestic quantity demanded is less than world quantity demanded
• D)domestic quantity demanded is zero at the world price
• E)excess quantity demanded is positive at the world price

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Definitions:

Total Value

The summation of all assets or investments owned by an individual or entity, reflecting overall worth.

Risk-Free Portfolio

An investment portfolio consisting of assets that have no risk of financial loss, typically associated with government bonds.

Portfolio Beta

A measure of the volatility, or systematic risk, of a portfolio in comparison to the market as a whole, indicating how sensitive the portfolio is to market movements.

Security Market Line

A line that represents the relationship between the risk of an investment and its expected return, used in capital asset pricing model (CAPM) to determine risk-adjusted returns.