The world price of a good is determined by the
A. demand for that good in the world market.
B. country that produces the good.
C. worldwide demand and supply of that good.
D. supply of that good in the world market.
Answer: C
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Which of the following statements is a normative statement?
A) Military spending as a percent of government spending decreased by 5 percent in the 1990s. B) Every American household should have health care insurance coverage. C) Welfare reform has decreased the amount the government spends on welfare. D) Fewer people are unemployed this year than last year. E) The price of computers fell last year.
Demand is inelastic if
a. the percentage change in price is greater than the percentage change in quantity demanded b. the percentage change in price is less than the percentage change in quantity demanded c. the percentage change in price is equal to the percentage change in quantity demanded d. the value of price elasticity is equal to -1 e. the value of price elasticity is less than -1 (e.g., -3)