Which Situation Would Most Likely Cause a DECREASE in Consumer

question 224

Multiple Choice

Which situation would most likely cause a DECREASE in consumer surplus in the toy market?

• A)The cost of shipping increases because of higher oil prices.
• B)Consumer income increases.
• C)There is an unexpected baby boom.
• D)A new assembly line design increases worker productivity.

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Definitions:

Self-sufficiency

The ability of a country, region, or individual to produce everything they need without relying on external sources.

Export-import Sector

The export-import sector consists of the trade activities in which goods and services are sold to a foreign country (export) and bought from a foreign country (import), contributing significantly to a nation's economy.

Joseph Stiglitz

An American economist and a professor at Columbia University, known for his work on the theory of markets with asymmetric information and his critical view on global economic policies.

IMF

The International Monetary Fund, an international organization that aims to foster global monetary cooperation and financial stability, facilitate international trade, and reduce poverty.