According the graph shown, if this economy were open to free trade, it would:
This graph demonstrates the domestic demand and supply for a good, as well as the world price for that good.
A. import this good, because the domestic price is greater than the world price.
B. export this good, because the domestic price is greater than the world price.
C. import this good, because the world price is greater than the domestic price.
D. export this good, because the world price is greater than the domestic price.
A. import this good, because the domestic price is greater than the world price.
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Total revenue is equal to
A) the change in price resulting from a one-unit increase in quantity sold. B) the amount people will buy at a given price. C) the change in the quantity sold when you change the price by one unit. D) price multiplied by the quantity sold. E) the price at which the good or service is sold.
Foreign aid to a poor country might
A) improve its long run economic growth prospects. B) interfere with its domestic affairs. C) be allocated to useless projects and thereby reduce its growth rate. D) be used to keep its ruling party in power rather than spur economic growth. E) do any of the above.