SCENARIO: PRODUCTION IN NORWAY

question 98

Multiple Choice

SCENARIO: PRODUCTION IN NORWAY
Suppose that Norway is a small country and currently produces 100,000
Board feet of lumber at $600 per 1,000 board feet.Then it begins to trade
At the world price of $500 per 1,000 board feet.As a result of trade,
Norway's production falls to 50,000 board feet and its consumption
Increases to 200,000 board feet.
Reference: Ref 8­2
(Scenario: Production in Norway) What is Norway's total gain in consumer
Surplus once it begins to trade?

• A)$10,000
• B)$15,000
• C)$100,000
• D)$150,000

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Definitions:

Sources of Power

The origins from which an individual or organization derives the ability to influence others, such as through expert knowledge, authority, or social relationships.

Compliance

The act of conforming to set rules, standards, or laws.

Influence Tactic

Strategies or approaches used by an individual or group to persuade or alter the behavior of others.

Negotiate

The process of discussing to reach an agreement or compromise between parties with differing needs, desires, or perspectives.