When a nation exports a good, its consumer surplus ________, and its producer surplus ________
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; increases
D
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If the nominal interest rate parity condition is not met,
A) imports will exceed exports. B) the return from holding domestic assets must exceed the expected return from holding foreign assets. C) the return from holding domestic assets must be less than the expected return from holding foreign assets. D) the return from holding domestic assets must be greater or less than the expected return from holding foreign assets.
A fall in import prices or an increase in productivity ________
A) constitute a positive supply shock B) typically leads to a rise in commodity prices C) typically comes with a reduction in output D) all of the above E) none of the above
________ have a horizontal and a vertical axis and are used in economics to illustrate relationships between two economic variables
A) Two-dimensional graphs B) One-dimensional graphs C) Pie Charts D) Bar graphs
In response to news reports that taking aspirin daily can reduce an individual's risk of a heart attack, there will most likely be a(n)
A. increase in the demand for aspirin. B. decrease in the supply of aspirin. C. increase in the quantity demanded of aspirin. D. increase in the supply of aspirin.