Exports Increase Producer Surplus but Decrease Consumer Surplus and Decrease

question 185

True/False

Exports increase producer surplus but decrease consumer surplus and decrease total surplus.

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Definitions:

Transfer Price

The price charged when one responsibility center within a company provides goods or services to another responsibility center in the same company.

Return On Investment

A measure used to evaluate the efficiency of an investment or compare the efficiency of several different investments, calculated by dividing the benefit (return) of an investment by the cost of the investment.

Performance Measure

Indicators used to evaluate the efficiency, effectiveness, or success of an organization or individual in achieving objectives.

Project Rejection

The process of declining to move forward with a project after evaluating its feasibility, risks, and potential returns.