When a nation starts importing a good or service, the domestic production of the good or service
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what the country exports is needed to determine if production increases, decreases, or does not change.
E) might change, but more information about what else the country imports is needed to determine if production increases, decreases, or does not change.
A
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Because more than half the federal welfare budget goes for health care, almost zero U.S. residents lacked health insurance in 2006
a. True b. False
Economists who think the capture theory explains regulatory behavior will support their claims by noting that
A) regulation as carried out in this country generates larger profits for the firms and does not generate lower prices for consumers. B) consumers actually dominate regulatory hearings through the influence of consumer advocacy groups. C) Congress ensured that consumers have more influence on the decisions of regulators by setting up the agencies in ways that insulated the regulators from the regulated firms. D) the firms that are regulated have greater incentive to try to influence regulators than do consumers.