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:

Analogies

Cognitive processes that identify similarities between two different ideas or objects, facilitating understanding and problem-solving.

Natural Selection

The process by which biological traits become more or less common in a population due to consistent effects on the survival and reproduction of their bearers.

Evolutionary

Pertaining to the process of natural selection and adaptation over generations, affecting the development of biological species.

Information Processing

A cognitive approach that describes the ways in which human beings encode, store, and retrieve information.