If in the Long Run, Imports Are Paid for by Exports

question 153

Multiple Choice

If in the long run, imports are paid for by exports, then

• A) any restriction of imports ultimately reduces exports.
• B) any restriction of imports ultimately expands exports.
• C) any restriction of imports has no impact on exports.
• D) any restriction of exports has no impact on imports.

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Definitions:

Successful Collusion

A scenario where firms in a market coordinate their actions, such as setting prices or output levels, to achieve collective benefits at the expense of fair competition and consumers.

Demand Curves

Graphical representations showing the relationship between the price of a product and the quantity of the product demanded.

Cost Curves

A graphical representation used in economics to show the total cost of producing a given quantity of output.

Oligopolistic Industry

A market structure characterized by a small number of large firms dominating the industry, with significant barriers to entry for new competitors.