If There Are No Trade Restrictions,a Country Will Import a Particular

question 107

Multiple Choice

If there are no trade restrictions,a country will import a particular good if:

• A)domestic quantity supplied equals domestic quantity demanded at the world price.
• B)there is excess domestic quantity demanded at the world price.
• C)the quantity of the good demanded by the domestic consumers decreases.
• D)the quantity of the good supplied by the domestic producers increases.
• E)the world price of the good is higher than its domestic price.

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Definitions:

Maturity Value

For an interest-bearing note, it is the sum of the face value (principal) and the interest dollars: MV = P + I.

360-Day Year

An accounting assumption that simplifies interest calculations by using a year composed of twelve 30-day months.

Leap Years

Years that contain 366 days instead of the usual 365, with an extra day added to February, occurring every four years to maintain the calendar year's alignment with the Earth's revolutions around the Sun.

Interest Computation

The process of calculating the amount of interest due on a loan or investment based on the principal amount, rate, and time.