Producer 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. An export quota agreement to stabilize the price of bauxite tends to be more successful when the member producer countries as a percentage of the world’s producer countries is __________ and the _________ it is for the member producer countries to store/stock pile bauxite?

   A. relatively small; more difficult
   B. relatively small; easier
   C. relatively large; more difficult
   D. relatively large; easier

5. 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

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

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

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

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

8. In the economy when a steel producer sells steel to car producer it is regarded as ?

   A. a final good
   B. an intermediate good
   C. an injection
   D. a leakage

9. 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

10. 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.