Author Question: Which of the following is correct? i. U.S. total surplus decreases when the United States exports a ... (Read 38 times)

809779 · **on:** Jun 29, 2018

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

Question 2

Deadweight loss refers to the loss in ________.

A) producer surplus due to a fall in the market price
B) consumer surplus due to an increase in the market price
C) total surplus due to a market distortion such as an externality
D) total surplus due to a change in consumers' preferences