Which of the Following Is True

question 179

Multiple Choice

Which of the following is true?
i.When the world price of a good is lower than the price that balances domestic supply and demand,a country gains from exporting the good.
ii.Compared to a no-trade situation,in a market with imports,consumer surplus is larger.
iii.Quotas raise the domestic price of imported goods.

• A) only i
• B) only ii
• C) only iii
• D) i and ii
• E) ii and iii

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Definitions:

Chaparral

Biome of dry shrubland in regions with hot, dry summers and cool, rainy winters.

Fire-resistant

Materials or substances that are able to withstand fire or to resist burning.

Seeds

Embryonic plants enclosed in protective outer coverings, capable of developing into a new plant under the right conditions of water, oxygen, and suitable temperature.

Permafrost

Permanently frozen layer of soil and rock occurring beneath the Earth's surface.