When a Country That Imported a Particular Good Abandons a Free-Trade

question 16

Multiple Choice

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

• A)producer surplus increases and total surplus increases in the market for that good.
• B)producer surplus increases and total surplus decreases in the market for that good.
• C)producer surplus decreases and total surplus increases in the market for that good.
• D)producer surplus decreases and total surplus decreases in the market for that good.

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Definitions:

Deposits In Transit

Refers to money that has been received and recorded by a business but has not yet been recognized by the bank by the end of the accounting period.

Outstanding Checks

Checks that have been written and recorded in a company's financial records but have not yet been cashed or cleared by the bank.

Deposits In Transit

Funds that have been deposited by a company but not yet credited to its bank account.

NSF Check

A check that has been declined by a bank due to insufficient funds in the account it was drawn on.