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alexira [117]
3 years ago
15

Suppose that Norway is a small country and currently produces 100,000 board feet of lumber at $600 per 1,000 board feet. Then it

begins to trade at the world price of $500 per 1,000 board feet. As a result of trade, Norway's production falls to 50,000 board feet and its consumption increases to 200,000 board feet. How many board feet of lumber does Norway now import?
A) 250,000 board feet
B) 200,000 board feet
C) 150,000 board feet
D) 100,000 board feet
Business
1 answer:
natulia [17]3 years ago
4 0

Answer:

The correct answer is C) 150,000 board feet.

Explanation:

In order to meet domestic demand, Norway must import the goods produced in other countries, which means that there is no price increase due to the shortage of the good.

If Norway only produces 50,000 board feets and the demand is 200,000, then it will be forced to introduce the missing amount that comes from other countries.

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If the production of a product or service involves external benefits, then the government can improve efficiency in the market b
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Answer:

Providing a subsidy to correct for an underallocation of resources.

Explanation:

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3 years ago
Pelzer Printing Inc. has bonds outstanding with 10 years left to maturity. The bonds have a 9% annual coupon rate and were issue
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Answer:

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4 years ago
Larkspur University sells 4,800 season basketball tickets at $60 each for the entire 15-game home schedule. (a) Give the entry t
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Answer:

The Journal entry is as follows:

Cash A/c                    Dr. $288,000

To Unearned basketball ticket revenue A/c     $288,000

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Given that,

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3 years ago
According to Mikey, the founder, Holden Outerwear does not manufacture its garments in the United States because of the: aplicat
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Answer:

d

Explanation:

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3 years ago
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