Refer to the Information Provided in Figure 20

question 174

Multiple Choice

Refer to the information provided in Figure 20.3 below to answer the question(s) that follow. Figure 20.3
-Refer to Figure 20.3. The domestic price of shoes is $80. After trade the price of a pair of shoes is $60. Now domestic production costs fall so that the equilibrium domestic price of a pair of shoes is $70. This would cause

• A) the number of pairs of shoes imported into this country to increase.
• B) the number of pairs of shoes imported into this country to decrease.
• C) the number of pairs of shoes exported from this country to increase.
• D) the number of pairs of shoes exported from this country to decrease.

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Definitions:

Trade Barriers

Any regulation or policy that restricts international trade, including tariffs, quotas, and non-tariff barriers, aimed at protecting domestic industries.

Farm Programs

Government initiatives designed to provide financial support and stabilization to the agriculture sector through subsidies, price supports, and conservation efforts.

United States

A country located in North America, known for its diverse geography, culture, and economy.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to ensure the free movement of people, goods, services, and capital among its members.