If There Are No Trade Restrictions, a Country Will Import

question 65

Multiple Choice

If there are no trade restrictions, a country will import a particular good if

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

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Definitions:

Monopolist

An individual or entity that has exclusive control over the production and sale of a particular product or service, preventing other entities from entering the market.

Output Units

The quantity of goods or services produced by a company or an economy.

Allocative Inefficiency

Occurs when resources in an economy are not allocated optimally, leading to outcomes where it is possible to improve someone's well-being without worsening others'.

Profit-Maximizing

A strategy or process employed by businesses to determine the price and output level that generates the most profit.