Question :
11) When a nation starts importing a good or service, : 1226619
11) When a nation starts importing a good or service, the domestic production of the good or service
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what the country exports is needed to determine if production increases, decreases, or does not change.
E) might change, but more information about what else the country imports is needed to determine if production increases, decreases, or does not change.
12) If Country A opens up their corn market to trade with the rest of the world and the global price of corn is lower than the equilibrium price of corn in Country A, then Country A will ________ corn, which will ________ consumer surplus, ________ producer surplus, and ________ total surplus.
A) import; increase; decrease; increase
B) import; decrease; increase; increase
C) export; increase; decrease; increase
D) export; decrease; increase; increase
E) export; decrease; increase; decrease
13) The above figure shows the U.S. market for chocolate. With no international trade, consumer surplus is equal to
A) area A + area B + area C + area D.
B) area A.
C) area B + area C + area D.
D) area C + area D.
E) area E.
14) The above figure shows the U.S. market for chocolate. With international trade, consumer surplus is equal to
A) area A + area B + area C + area D.
B) area A.
C) area B + area C + area D.
D) area C + area D.
E) area E.
15) The above figure shows the U.S. market for chocolate. With no international trade, producer surplus is equal to
A) area A + area B + area C + area D.
B) area B + area C + area D + area E.
C) area B + area C + area D.
D) area C + area D.
E) area E.
16) The above figure shows the U.S. market for chocolate. With international trade, the gain in total surplus is equal to
A) area B.
B) area A + area B + area C + area D.
C) area B + area C + area D + area E.
D) area C + area D.
E) area B + area C + area D.
17) The above figure shows the U.S. market for chocolate. With no international trade, consumer surplus is equal to ________ and producer surplus is equal to ________.
A) area A + area B + area C + area D; area E
B) area B + area C + area D; area A + area E
C) area A; area E
D) area C + area D; area B + area E
E) area E; area A + area B + area C + area D
18) The above figure shows the U.S. market for chocolate. With international trade, ________ is the transfer of surplus from producers to consumers.
A) area B +area C + area D
B) area B
C) area C + area D
D) area A
E) area E
19) When a nation exports a good or service in which it has a comparative advantage, employment in that industry
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change.
E) might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change.
20) When a nation exports a good or service in which it has a comparative advantage, production of the good or service
A) decreases.
B) stays the same.
C) increases.
D) might change, but more information about what the country imports is needed to determine if production increases, decreases, or does not change.
E) might change, but more information about what else the country exports is needed to determine if production increases, decreases, or does not change.
