Use the Following Figure to Answer the Questions : Figure

question 79

Multiple Choice

Use the following figure to answer the questions : Figure 10-5 shows the domestic U.S.market for bananas and the global market for bananas.The domestic supply curve is given by SUPPLY_US.With free trade,the equilibrium output in the U.S.market is Q.The import quota imposed by the government is equal to 0A.
-Refer to Figure 10-5.Given that trade in bananas is free from any restrictions,which of the following would be true if P₅ was lesser than P₃?

• A)The domestic demand for bananas would be fully satisfied through imports.
• B)The U.S.would not import bananas;domestic demand would be satisfied by domestic production.
• C)Domestic producers would be worse off and foreign producers would be better off.
• D)Domestic consumers would lose surplus as they would have to pay a higher domestic price.

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Definitions:

Resource Allocation

The process of assigning available resources, such as time, money, or personnel, to specific tasks, projects, or priorities.

Organizational Politics

The use of power and social networking within an organization to achieve changes that benefit the individual or a group, often at the expense of others.

Organizational Citizenship

Behavior by an employee that is above and beyond their basic job requirements, aimed at benefiting the overall organization.

Machiavellian Values

Principles based on the political philosophy of Niccolò Machiavelli, which often endorse the use of cunning, strategy, and sometimes unethical means to gain and maintain power.