When a Nation Imports a Good,its ________ Surplus Increases and Its

question 256

Multiple Choice

When a nation imports a good,its ________ surplus increases and its ________ surplus increases.

• A) consumer; producer
• B) consumer; consumer
• C) producer; producer
• D) producer; total
• E) total; consumer

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Definitions:

Economic Profits

The financial gain achieved when the revenue from business activities exceeds the costs, expenses, and taxes needed to sustain the activity, including opportunity costs.

Purely Competitive Industries

Markets characterized by many buyers and sellers, homogeneous products, and free entry and exit, leading to price-taking behavior.

Cut-Throat Competition

Intense competition where competitors use aggressive tactics to undercut each other’s prices and gain market share.

Consumer Demand

The desire by consumers to purchase goods and services, quantified by the amount of a product people are willing to buy at certain price levels.