Total surplus is the area_______________?

Related Mcqs:

1. Compared to what occurred under free trade, Mexico’s producer surplus ____ and consumer surplus ____ as a result of the subsidy Use the figure that you have plotted to calculate the amounts ?

   A. decreases, decreases
   B. decreases, increases
   C. increases, decreases
   D. increases, increases

2. To reduce imports, suppose that the government of Norway’s imposes a quota equal to 800 computers, Compared to what occurred under free trade, Norway’s consumers surplus will ________ and its producer surplus will _______ Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

   A. increase, increase
   B. increase, decrease
   C. decrease, increase
   D. decrease, decrease

3. With free trade suppose that the rest of the world can supply computers to Norway at a price of $1,500 Norway’s imports will now equal. Compared to What occurred in the absence of trade, Norway’s consumers surplus will _____ and its producer surplus will ____. Can you calculate these amounts? Try plotting the information of this table on a sheet of graph paper ?

   A. 1,600 computers, decrease, increase
   B. 1,600 computers, increase, decrease
   C. 1,200 computers, decrease, increase
   D. 1,200 computers, increase, decrease

4. With free trade, suppose that the rest of the world can supply calculators to Canada at a price of $30. Canada’s imports would now equal _____ and its consumer surplus would ____ relative to what occurred in the absence of trade. What is the change in consumer surplus? Refer to the figure that you have plotted ?

   A. 20 calculators increase
   B. 25 calculators decrease
   C. 25 calculators increase
   D. 30 calculators increase

5. Suppose that the price of a new bicycle is Rs300 Natalie values a new bicycle at Rs 400 it costs Rs200 for the seller to produce the new bicycle. What is the value of total surplus if Natalie buys a new bike ?

   A. Rs500
   B. Rs300
   C. Rs200
   D. Rs400

6. Refer to Exhibit 4. If there is no tax placed on the product in this market total surplus is the area ?

   A. B + C + E + F
   B. E + F
   C. A + B + C + D
   D. A + B + C + D + E + F

7. Refer to Exhibit 4. If a tax is placed on the product in this market total surplus is the area ?

   A. A + B + C + D+ E +F
   B. A + B + C + D
   C. A + D
   D. B + C + E + F

8. Consumer surplus is the area ?

   A. below the demand curve and above the price.
   B. above the supply curve and below the price.
   C. above the demand curve and below the price.
   D. below the supply curve and above the price.
   E. below the demand curve and above the supply curve

9. If a buyer’s willingness to pay for a new Honda is Rs20,000 and she is able to actually buy it for Rs18,000 her consumer surplus is ?

   A. Rs18,000
   B. Rs20,000
   C. Rs2,000
   D. Rs0.

10. Producer surplus is the area ?

    A. below the supply curve and above the price
    B. below the demand curve and above the supply curve
    C. below the demand curve and above the price
    D. above the demand curve and below the price
    E. above the supply curve and below the price