If the World Price Is Greater Than the Domestic Price

question 53

Multiple Choice

If the world price is greater than the domestic price of a commodity in a closed economy,when that economy begins to trade,the economy will _________ the commodity.

• A) stop consuming
• B) stop producing
• C) be self-sufficient in
• D) become a net importer of
• E) become a net exporter of

---

Definitions:

Transactional Costs

Expenses incurred during the process of buying or selling services or commodities, encompassing costs associated with information, negotiation, and enforcement of contracts.

Financial Outlay

The amount of money spent or invested in a specific endeavor or project.

Life Cycle Costs

The total cost of ownership of a product or system over its entire lifespan, including acquisition, operation, maintenance, and disposal costs.