Answer:
d) will become an importer of tomatoes.
Explanation:
Consumer surplus would increase because the price at which they buy tomatoes would reduce while producer surplus would reduce because the price of tomatoes would reduce as a result of international trade.
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.Because the price of tomatoes in the US is greater than the price of tomatoes in the world, when the US begins international trade, it would import tomatoes because it is inefficient in the production of tomatoes.
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Answer:
having declining price levels affect the reinvestment rate of your current income stream
Answer:
Circular flow diagram.
Explanation:
The circular flow diagram simplifies the interaction of two groups, firms and households, and allows us to make predictions about economic behavior.
The firm sells their goods and services in the market while the household buys these goods and services.
Hence, the circular flow diagram represents the interaction between the household and firms with respect to the market.
Answer and Explanation:
The computation of the net worth statement is shown below:
Assets
Checking account $800
Scooter $2,000
Total assets $2,800 (A)
Liabilities
OWed to jaycee Auto $920
River college $125
Total liabilities $1,045 (B)
Net worth $1,755 (A - B)
Answer:
The international monetary fund.
Explanation:
The international monetary fund is made up of 189 countries around the world that foster global monetary cooperation, promote high employment, secure financial stability, facilities international trade, and reduce poverty. It periodically depends on the World Bank for funding.
Countries that are having problems with balance of payment can borrow money from IMF pool of resources.
In this scenario country B is unable to pay for goods bought from country A till it makes export. There is a problem of balance of trade. The IMF can help country B make the payment by borrowing it funds.