If the World Price of Cotton Is Less Than the Price

question 157

Multiple Choice

If the world price of cotton is less than the price that would occur domestically without trade, then a country will:

• A) decrease its demand for cotton, and increase its demand for cotton substitutes.
• B) increase its demand for cotton, and decrease its demand for cotton substitutes.
• C) import cotton.
• D) export cotton.

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Definitions:

Growing Practice

An activity or profession that is experiencing an increase in size, number, or both, often used in relation to businesses or industries.

Issuing Business

A company or entity that offers securities for sale to the public or insiders, including stocks and bonds, to raise capital.

Finance Department

A division within a company that handles financial operations, planning, and strategies including accounting, budgeting, and investments.

Oversight Responsibility

The duty to oversee and ensure proper management and adherence to laws, regulations, and standards within an organization or system.