The Nation of Zelzar Has Decided to End Its Policy

question 150

Multiple Choice

The nation of Zelzar has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing incense,exporting steel,and neither importing nor exporting rugs.We can conclude that Zelzar's new free-trade policy has

• A) increased consumer surplus and producer surplus in the incense market.
• B) increased consumer surplus in the steel market and left producer surplus in the rug market unchanged.
• C) decreased consumer surplus in both the steel and rug markets.
• D) decreased consumer surplus in the steel market and increased total surplus in the incense market.

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Definitions:

Test Statistic

A number derived from sample observations in a hypothesis test that determines if the null hypothesis should be refused.

Randomized Block

A design of experiment that aims to reduce variation from confounding variables by grouping them into blocks before randomly applying treatments within each block.

Analysis of Variance

A statistical method used to test the differences between two or more means by analyzing variance.

Matched Pairs

refers to a design in experiments where each case has a unique counterpart for comparison, minimizing variability.