What Happened to the Level of World Trade Between 1980

question 84

Multiple Choice

What happened to the level of world trade between 1980 and the present?

• A) World trade jumped from $2 trillion to over $5 trillion.
• B) World trade dropped from over $5 trillion to about $3 trillion.
• C) World trade rose from $2 trillion to $4 trillion in 1995, but has since dropped to about $3 trillion.
• D) World trade dropped from $4 trillion to about $2 trillion in 1995, then rose to its current level of $5 trillion
• E) World trade held steady between 1980 and the present.

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Definitions:

Externalities

External benefits and external costs.

Public Goods

Goods that are non-excludable and non-rivalrous, meaning individuals cannot be effectively excluded from use, and where use by one individual does not reduce availability to others.

Consumer Surplus

The difference between the total amount consumers are willing and able to pay for a good or service and the total amount they actually pay.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service and the actual price they receive.