Which of the Following Is Correct

question 247

Multiple Choice

Which of the following is correct?
i.U.S.total surplus decreases when the United States exports a good.
ii.U.S.total surplus decreases when the United States imports a good.
iii.U.S.total surplus increases when the United States imports a good and when it exports a good.

• A) i only
• B) iii only
• C) i and ii
• D) ii only
• E) None of the above because the U.S. total surplus does not change as a result of trade

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Definitions:

Principle

A fundamental truth or proposition that serves as the foundation for a system of belief, behavior or reasoning.

Market Outcomes

The results of interactions between buyers and sellers in a market, determining price levels and quantities of goods and services exchanged.

Marginal Cost

The additional outlay required for the production of an extra unit of a product or service.

Automobile

A wheeled motor vehicle used for transportation, typically carrying passengers.