Answer:
The correct answer is option c.
Explanation:
In an economy, in the long run, the aggregate supply is fixed. The aggregate supply curve is a vertical line. This is because, in the long run, supply remains unaffected by price level. The increase in product price is balanced by an increase in input prices. So the supply does not change with change in the price level.
In the long run, the supply changes with change in the availability of resources and change in technology. So when the aggregate demand declines, the demand curve shifts to the left. The equilibrium quantity remains the same but the price level declines.
It is also evident in the figure attached.
Answer:
$210,000
Explanation:
The computation of the external price is shown below
Making cost = buying cost
$120,000 + $25,000 + $45,000 + $30,000) = external price + Unavoidable fixed cost (30,000-20,000)
$220,000 = External price + $10,000
So,
External price = 210,000
Hence, the same is to be considered
Therefore the external price is $210,000
Answer:
1. The best that completes the table is:
Oil from a Middle Eastern country that is considered hostile.
2. An example of local content requirement is:
Imported apples exceeding a percentage of domestic production.
Explanation:
Many countries of the world impose free-trade restrictions. For example, tariffs raise the prices of imported goods relative to domestic goods (good produced at home), thereby making imports more expensive. Some governments provide subsidies to their domestic industries, thereby making the domestic goods cheaper than their foreign counterpart and discouraging free trade. Local content requirements are another means to restrict free trade. These requirements demand that part of the production process for imported goods be completed domestically.
Answer: A
Explanation: it’s easy to compare