If the United States Starts to Import a Good That

question 73

Multiple Choice

If the United States starts to import a good that had previously been produced in the United States,the market price of the good in the United States

• A) rises.
• B) falls.
• C) remains constant.
• D) either remains constant or rises, depending on how whether the supply of the good stays the same or increases.
• E) There is not enough information to answer the question because we need to know if the market price in the United States had been above or below the world market price before trade began.

Develop critical thinking and analytical skills by constructing and answering relevant sociological questions.

Understand the concept of opportunity cost in holding money and its calculation.

Recognize the relationship between interest rates and the quantity of money demanded.

Identify factors that affect the demand for and supply of money in the economy.

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Definitions:

Escalation of Commitment

A behavior pattern in which an individual or group continues to invest in a decision despite evidence of its ineffectiveness or failure.

Economic

Pertaining to the production, distribution, and consumption of goods and services, as well as the management of financial resources in a community or society.

Managerial

Pertaining to the activities, responsibilities, and skills of managers in planning, organizing, leading, and controlling within an organization.

Technical

Relating to or involving the practical application of scientific knowledge, especially in industrial or mechanical fields.