According to the Text, Data on Imports May Not Completely

question 21

Multiple Choice

According to the text, data on imports may not completely measure market potential because:

• A) these data are not available for most countries and products.
• B) foreign competitors will not report export data accurately.
• C) transportation costs impact prices.
• D) all of the above.
• E) two of A, B, and C.

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Definitions:

Demand

The capacity for purchasing goods or services that people demonstrate readiness and financial ability for, at diverse price levels, during a certain timeframe.

Law Of Demand

The economic principle stating that as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa.

Income Increases

A situation wherein individuals or entities experience a rise in their earnings or profits over a certain period.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good.