When the Nation of Brownland First Permitted Trade with Other

question 191

Multiple Choice

When the nation of Brownland first permitted trade with other nations,domestic producers of wheat experienced an increase in producer surplus of $4 million and total surplus in Brownland's wheat market increased by $1 million.We can conclude that

• A)Brownland became an exporter of wheat.
• B)consumer surplus in Brownland increased by $3 million.
• C)the opening of trade caused the domestic supply curve for wheat in Brownland to shift to the left.
• D)this example is inconsistent with the economic theory of international trade.

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Definitions:

Gross Margin Ratio

A financial metric indicating the percentage of revenue that exceeds the cost of goods sold; used to assess a company's financial health.

Return on Common Stockholders' Equity

A financial ratio that measures the profitability generated from the common stockholders' equity investment, indicating how efficiently equity capital is being utilized.

Total Asset Turnover

Total asset turnover measures how efficiently a company uses its assets to generate sales, calculated as sales divided by average total assets.

Inventory Turnover

A ratio indicating how many times a company's inventory is sold and replaced over a period, used to assess efficiency in managing and selling products.