3rd Attempt C211

Consumer surplus decreases.

Suppose there is an early freeze in California that reduces the size of the lemon crop. As the price of lemons rises, what happens to consumer surplus in the market for lemons?

either the revenue firms receive from the sales of goods and services or the payments they make to factors of production.

According to the circular-flow diagram GDP, can be computed as

tariff

A tax on an imported good is called a

consumer surplus decreases and total surplus decreases in the market for that good.

When a country that imports a particular good imposes a tariff on that good,

The purchase of tutoring services from a tutor who holds citizenship outside the country but resides within the country.

Which of the following is included in the calculation of GDP?

The efficiency argument

Which of the following is not a commonly-advanced argument for trade restrictions?

The purchase of a new house

Which of the following items is the one type of household expenditure that is categorized as investment rather than consumption?

included in U.S. GDP, but it is not included in U.S. GNP

Jackie, a Canadian citizen, works only in the United States. The value of the output she produces is

$8

Bob purchases a book for $6, and his consumer surplus is $2. How much is Bob willing to pay for the book?

market prices.

In order to include many different goods and services in an aggregate measure, GDP is computed using, primarily,

below the demand curve and above price.

On a graph, consumer surplus is represented by the area

would not be included in GDP because they are transfer payments

To encourage formation of small businesses, the government could provide subsidies; these subsidies

consumer surplus decreases and total surplus decreases in the market for that good.

When a country that imports a particular good imposes an import quota on that good,