If the world price for good A is above the domestic price for good A without trade, then consumer surplus will ________ and producer surplus will ________ with trade.
A. increase; increase
B. decrease; increase
C. increase; decrease
D. decrease; decrease
Answer: B
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Suppose the world economy is divided into two halves. In Region A, all economies experience a decrease in desired saving, while desired saving is unchanged in Region B
If there is open trade and perfect capital mobility across the two regions, which of the following is true? A) Actual saving in Region B has increased. B) Actual investment in Region A has increased. C) Region A's imports from Region B have decreased. D) all of the above E) none of the above
The market system's answer to the fundamental question "What will be produced?" is essentially:
A. "Goods and services that are profitable." B. "Low-cost goods and services." C. "Goods and services that can be produced using large amounts of capital." D. "Goods and services that possess lasting value."
The lowest level of unemployment compatible with price stability
A. Is estimated at between 0 and 2 percent unemployment. B. Is referred to as full employment. C. Allows for some cyclical unemployment. D. Is equal to the natural rate of unemployment plus the inflation rate.
What is the timeline for the U.S. federal budget each year? When does a fiscal year begin and end?
What will be an ideal response?