Figure 81 Depicts the Supply and Demand Schedules of Calculators for for Greece,a

question 289

Multiple Choice

Figure 8.1 depicts the supply and demand schedules of calculators for Greece,a "small" country that is unable to affect the world price.Greece's supply and demand schedules of calculators are respectively depicted by SG and DG.Assume that Greece imports calculators from either Germany or France.Suppose Germany is the world's low-cost producer who can supply calculators to Greece at $20 per unit,while France can supply calculators at $30 per unit.
Figure 8.1.Effects of a Customs Union

-Consider Figure 8.1.Suppose Greece had formed a customs union with Germany,rather than France.The value of the trade diversion effect would be:

• A) Zero
• B) $5
• C) $10
• D) $15

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Definitions:

Mean Weekly Salary

The average amount of money earned by workers in a week, calculated by summing all weekly salaries and dividing by the number of salaries.

Female Employees

Women who are employed by an organization, company, or business.

Male Employees

Referring to workers or staff members who identify as male.

GPAs

Grade Point Averages, a numeric representation of the average of all final course grades accumulated over a period.