Question :
11) Which of the following statements true?
A) If the domestic : 1377415
11) Which of the following statements is true?
A) If the domestic price of a good in a country is higher than the world price, the country will become an exporter of the good.
B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good.
C) If the domestic price of a good in a country is higher than the world price, the country will become an importer of the good.
D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.
12) Which of the following statements is true?
A) If the domestic price of a good in a country is lower than the world price, the country will become an exporter of the good.
B) Whether a country becomes an importer or an exporter of a good depends only on the domestic price of the good and is independent of the world price of the good.
C) If the domestic price of a good in a country is lower than the world price, the country will become an importer of the good.
D) Whether a country becomes an importer or an exporter of a good depends only on the world price of the good and is independent of the domestic price of the good.
The table below shows the domestic price of a pair of trousers in four countries.
Country
Domestic price ($)
A
10
B
6
C
13
D
16
13) Refer to the table above. If the world price for a pair of trousers is $12, then which of the following statements is true?
A) All the four countries will export trousers.
B) All the four countries will import trousers.
C) Country A and Country B will import trousers, whereas Country C and Country D will export trousers.
D) Country C and Country D will import trousers, whereas Country A and Country B will export trousers.
14) Refer to the table above. If the world price of trousers is $8 per pair, then which of the following statements is true?
A) Country B, Country C, and Country D will export trousers, whereas Country A will import trousers.
B) Country A, Country C, and Country D will import trousers, whereas Country B will export trousers.
C) Only Country B will import trousers, whereas country A, country C, and country D will export trousers.
D) All countries will import trousers.
15) Refer to the table above. If the world price of trousers is $5 per pair, then which of the following statements is true?
A) All the four countries will import trousers.
B) All the four countries will export trousers.
C) Country A and Country D will export trousers, whereas Country B and Country C will import trousers.
D) Country B and Country C will export trousers, whereas Country A and Country D will import trousers.
16) Refer to the table above. If the word price of trousers is $18 per pair, then which of the following statements is true?
A) All the four countries will export trousers.
B) All the four countries will import trousers.
C) Country A and country D will export trousers, whereas country B and country C will import trousers.
D) Country A and country D will import trousers, whereas country B and country C will export trousers.
