Figure 9.6In Figure 9.6 if price is P2, then the industry will:

A. expand.
B. contract.
C. stay the same size.
D. cease to exist.

Answer: C

Economics

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2.3 Discretionary Policy

What will be an ideal response?

Economics

When a nation exports a good or service in which it has a comparative advantage, employment in that industry

A) decreases. B) stays the same. C) increases. D) might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change. E) might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change.

Economics