Surplus Refers To

question 38

Multiple Choice

Surplus refers to:

• A) a way of measuring who benefits from transactions and by how much.
• B) the difference between the price the buyer would have paid and the actual price paid.
• C) the difference between the price the seller would have accepted and the actual sell price.
• D) All of these statements are true.

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Definitions:

World Trade Organization

An intergovernmental organization that regulates international trade with the aim of ensuring that trade flows as smoothly, predictably, and freely as possible.

Trade Barriers

Measures such as tariffs, quotas, and regulations that governments use to control the amount and type of goods and services imported or exported.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, underpinning international trade theories.

Absolute Advantage

The ability of an entity to produce a good or service at a lower cost per unit than other competitors using the same amount of resources.