The diagram below shows the domestic demand and supply curves for denim jeans in Canada.The prevailing world price is PW.Assume that all jeans are identical.
FIGURE 34- 2
-If a country is exporting more goods and services than it is importing,we should consider this to be "beneficial" only in the sense that it
A) represents an accumulation of assets for the domestic economy that can be used in the future to finance consumption.
B) means that an economy is earning more than it is spending.
C) increases the standard of living through a larger national income.
D) is a necessary condition to enable a country to take full advantage of scale economies.
E) allows a country to add to its foreign- exchange reserves above the level needed to cope with fluctuations in private payments.
Correct Answer:
Verified
Q80: The diagram below shows supply and demand
Q81: Canada and the United States had a
Q82: If a tariff is imposed in a
Q83: The diagram below shows the demand and
Q84: If Canada reduces the tariff imposed on
Q86: Canada is a net importer of durable
Q87: A $1 per- litre tariff on all
Q88: The diagram below shows the demand and
Q89: Suppose five countries in Central America agree
Q90: The diagram below shows the domestic demand
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents