Which of the Following Statements Is TRUE

question 107

Multiple Choice

Which of the following statements is TRUE?
I. If the United States bans the importation of bananas, consumer surplus will decrease.
II. If the United States bans the importation of bananas, producer surplus will decrease.
III. If the United States bans the importation of bananas, it will produce bananas at a cost exceeding their world purchase price.

• A) I, II, and III
• B) I and II only
• C) I and III only
• D) II and III only

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Definitions:

Rival European Empires

The competitive dynamic between European powers such as Great Britain, France, Spain, and others as they sought to expand their territories and influence through colonization and conquest from the 15th to the 20th centuries.

Indians

Refers to the people native to India or the indigenous peoples of the Americas, depending on the context.

Walking Purchase

A controversial 1737 agreement where Pennsylvania colonists claimed to have purchased land from the Lenape Indians based on the distance covered in a day and a half walk, significantly expanding colonial territory.