Question :
31) The above figure shows the U.S. market for wheat. : 1239185
31) The above figure shows the U.S. market for wheat. With international trade, the gain in total surplus is equal to ________.
A) area A
B) area B + area C
C) area D
D) area C + area F
E) area C + area D + area F
32) The above figure shows the U.S. market for wheat. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________.
A) area A; area B + area C + area E + area F
B) area A + area B + area C; area E + area F
C) area E + area F; area A
D) area B + area C + area D; area E + area F
E) area A + area B + area C + area D; area E + area F
33) The above figure shows the U.S. market for wheat. With international trade, ________ is the transfer of surplus from consumers to producers.
A) area B + area C
B) area D
C) area C + area F
D) area C + area D
E) area B + area C + area D
34) When a nation exports a good, its total surplus ________, and when it imports a good, its total surplus ________.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; does not change
35) When a nation exports a good, its ________ surplus increases, and when it imports a good, its ________ surplus increases.
A) total; total
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer
36) When a nation exports a good, its ________ surplus increases, and when it imports a good, its ________ surplus increases.
A) consumer; total
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer
37) When a nation exports a good, its ________ surplus increases, and when it imports a good, its ________ surplus increases.
A) consumer; producer
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer
38) When a nation exports a good, its ________ surplus decreases, and when it imports a good, its ________ surplus decreases.
A) consumer; producer
B) consumer; consumer
C) producer; producer
D) producer; consumer
E) total; consumer
39) International trade is definitely in the social interest if
A) consumer surplus increases.
B) producer surplus increases.
C) consumer surplus does not decreases.
D) producer surplus does not decreases.
E) total surplus increases.
40) Imports ________ consumer surplus, ________ producer surplus, and ________ total surplus.
A) decrease; decrease; decrease
B) increase; increase; increase
C) increase; decrease; decrease
D) increase; decrease; increase
E) decrease; increase; increase
41) When a country imports a good, the ________ in consumer surplus is ________ the ________ in producer surplus.
A) decrease; larger than; increase
B) decrease; smaller than; increase
C) increase; smaller than; decrease
D) increase; equal to; decrease
E) increase; larger than; decrease
42) When a country exports a good, the country’s producer surplus ________, consumer surplus ________, and the country ________ from the trade.
A) increases; increases; gains
B) decreases; increases; gains
C) increases; decreases; gains
D) decreases; decreases; loses
E) increases; decreases; loses
43) Which of the following is correct?
i.U.S. total surplus decreases when the United States exports a good.
ii.U.S. total surplus decreases when the United States imports a good.
iii.U.S. total surplus increases when the United States imports a good and when it exports a good.
A) i only
B) iii only
C) i and ii
D) ii only
E) None of the above because the U.S. total surplus does not change as a result of trade
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