If a country is a price taker for a good in the world market, ________
A) its consumption and production decisions of the good play a key role in determining world prices
B) its consumption and production decisions of the good do not affect world prices
C) its demand for the good remains the same irrespective of changes in world prices
D) it is the only exporter of the good in the world market
B
You might also like to view...
In the figure above, compared to a perfectly competitive industry with the same costs, a single-price, unregulated monopoly will raise the price by
A) $2.00 per unit. B) $4.00 per unit. C) $6.00 per unit. D) $8.00 per unit.
If the government subsidizes an activity it believes is generates a positive externality and it really only produces an inframarginal positive externality then the subsidization will result in an overproduction of the activity in question
a. True b. False