In the Market for Apples in a Certain Country,consumer Surplus

question 69

Multiple Choice

In the market for apples in a certain country,consumer surplus increases and total surplus increases when that country

• A)abandons a no-trade policy,adopts a free-trade policy,and becomes an importer of apples.
• B)abandons a no-trade policy,adopts a free-trade policy,and becomes an exporter of apples.
• C)abandons a free-trade policy,adopts a no-trade policy,and becomes an importer of apples.
• D)abandons a free-trade policy,adopts a no-trade policy,and becomes an exporter of apples.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, providing voting rights and a dividend entitlement.

No-par Common Stock

Common stock issued without a par value which means it is not assigned a nominal or face value, but it still represents ownership in a company.

Stated Value

A nominal value assigned to a corporation's stock that bears no relation to its market price, used for calculating capital stock.

Par Preferred Stock

A type of preferred stock that has a nominal face value, which is the amount paid out to shareholders during liquidation before common stockholders.