A Nation Will Import a Particular Product If the World

question 71

True/False

A nation will import a particular product if the world price is less than the domestic price.

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Definitions:

Producer Surplus

Producer surplus is the difference between what producers are willing to accept for a good or service versus what they actually receive, usually measured at points above the supply curve.

Tax

A mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund various public expenditures.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus what they actually pay.

Deadweight Loss

An economic inefficiency arising when the balance for a product or service fails to be attained or is unattainable.