The Figure Above Shows the U

question 25

Multiple Choice

The figure above shows the U.S. market for T-shirts, where SUS is the domestic supply curve and DUS is the domestic demand curve. The United States trades freely with the rest of the world. The world price of a T-shirt is $5.
-Based on the figure above,as a result of international trade,consumer surplus

• A) increases by $150 million.
• B) decreases by $150 million.
• C) increases by $90 million.
• D) decreases by $90 million.
• E) remains unchanged.

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Definitions:

Overjustification Effect

The decrease in intrinsic motivation to perform an activity when external incentives are given, especially if the incentives are perceived as excessive.

Social Loafing

The occurrence in which a person contributes less towards a common objective while working in a team than they do when working independently.

Homeostasis

Homeostasis is the process by which living organisms regulate their internal environment to maintain a stable, constant condition in response to changes in the external environment.

Collective Unconscious

A term coined by Carl Jung to describe the part of the unconscious mind that is derived from ancestral memory and experience and is common to all humankind.