If the world price for good A is above the domestic price for good A without trade, then consumer surplus will ________ and total economic surplus will ________ with trade.
A. increase; decrease
B. decrease; increase
C. decrease; decrease
D. increase; increase
Answer: B
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Refer to Table 5.1. What is Hector's opportunity cost of producing one bracelet?
A) 1/5 of a tiara B) 1.5 tiaras C) 5 tiaras D) 6 tiaras
The equilibrium level of real GDP is $1,000 . the target level of real GDP is $1,250, and the marginal propensity to consume (MPC) is 0.60 . The target can be reached if government spending is:
a. increased by $60 billion. b. increased by $100 billion. c. increased by $250 billion. d. held constant.
In which of the following market structures do firms produce the welfare-maximizing level of output?
a. perfect competition b. monopolistic competition c. monopoly d. Both a and b are correct.
What should happen to the equilibrium price and quantity in a market as a result of a tariff on imports?
A. Equilibrium price and quantity should both go down. B. Equilibrium price should go up, and equilibrium quantity should go down. C. Equilibrium price and quantity should both go up. D. Equilibrium price should go down, and equilibrium quantity should go up.