When a Country Exports a Good Because the World Price

question 54

Multiple Choice

When a country exports a good because the world price is higher than the no-trade domestic price,domestic purchases of the good ________ and domestic production of the good ________.

• A) increase; increases
• B) increase; decreases
• C) decrease; increases
• D) decrease; decreases
• E) do not change; increases

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Definitions:

Uniform Commercial Code

A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the legal rules around sales, leases, negotiable instruments, and secured transactions among states.

Writing

The act or medium of expressing thoughts, ideas, or information through the use of written symbols or characters.

Statute of Frauds

A legal principle that requires certain types of contracts to be executed in writing and signed by the party to be charged, to be enforceable.

Document Signing

The act of officially endorsing a document through a handwritten or digital signature, signifying agreement or approval.