If the Price of a Good in a Closed Economy

question 40

Multiple Choice

If the price of a good in a closed economy is greater than the world price, then if the country opens its markets to world trade the country will be a ________ of that good.

• A)net importer
• B)net exporter
• C)importer and exporter
• D)producer

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Definitions:

Tender Offers

Public, open proposals by a party to purchase a substantial portion of a company’s shares or bonds from its shareholders or bondholders.

Consent Orders

Legal agreements approved by a judge that resolve disputes without admitting guilt or fault by either party, often used in regulatory settlements.

Merger Negotiations

The process of discussing and reaching an agreement on the terms of combining two or more companies into one entity.

SEC Rules

Regulations established by the U.S. Securities and Exchange Commission, which govern the securities industry and aim to protect investors, maintain fair, orderly, and efficient markets.