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:

Bank

A financial institution licensed to receive deposits, offer loans, and provide various financial services to individuals and businesses.

Negotiable Instruments

Financial documents that guarantee the payment of a specified sum of money, either on-demand or at a set time.

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize statutes across the states to facilitate easier interstate commerce.

World Trade Organization

An international organization that regulates international trade between nations, aiming to ensure that trade flows as smoothly, predictably, and freely as possible.