In a Market That Moves from a Situation of No

question 118

Multiple Choice

In a market that moves from a situation of no trade to a situation where a good is exported,the price of the good ________,the quantity produced by the domestic industry ________,and producer surplus ________.

• A)rises;increases;increases
• B)falls;decreases;decreases
• C)does not change;increases;increases
• D)does not change;decreases;decreases
• E)rises;increases;decreases

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Definitions:

Black Market

An illegal trading environment where goods or services are exchanged in violation of government regulations.

Equilibrium

Equilibrium is a state in which market supply and demand balance each other, and as a result, prices become stable.

Tax on Imports

Levies placed by a government on goods coming into the country, often used to protect domestic industries or generate revenue.

Tariff

A tax imposed by a government on imported goods, often used to protect domestic industries and regulate trade balances.