Use the Following to Answer Question

question 49

Multiple Choice

Use the following to answer question:
-(Figure: The Market for Oranges in South Africa) Use Figure: The Market for Oranges in South Africa.In autarky,the price of oranges in South Africa is P₁.When the economy is opened to trade,the price falls to P_W and the change in total surplus is area:

• A)O.
• B)O + P.
• C)M + N + O + P.
• D)M + N + O + P + Q.

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Definitions:

Employer

An individual or organization that hires and pays individuals for their labor or services.

FICA

Federal Insurance Contributions Act; a U.S. law that requires a payroll tax on both employees and employers to fund Social Security and Medicare.

Social Security

A government program providing economic assistance to people with an inadequate or no income.

Yellow-Dog Contracts

A type of employment agreement where the worker promises not to join a labor union during the term of employment.