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

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Definitions:

Industrial Productivity

A measure of the efficiency of production in the industrial sector of the economy, often influenced by advancements in technology and processes.

White-Collar Workers

Employees who perform professional, managerial, or administrative work, often in office settings, as opposed to manual labor.

Treaty of Detroit

This historically refers to any of several agreements made in the 18th and early 19th centuries, often involving land transactions or peace treaties between Native American tribes and colonial or federal governments around the Detroit area.

United Auto Workers

A labor union in the United States and Canada representing workers in the automotive industry, advocating for workers' rights and benefits.