microeconomics 1

All else equal, what happens to consumer surplus if the price of a good decreases a. Consumer surplus increases. b. Consumer surplus decreases. c. Consumer surplus is unchanged. d. Consumer surplus may increase, decrease, or remain unchanged.

a. Consumer surplus increases.

If the demand for a good or service increases, producer surplus a. increases. b. decreases. c. remains the same. d. may increase, decrease, or remain the same.

a. increases.

If a country allows trade and, for a certain good, the domestic price without trade is lower than the world price, a. the country will be an exporter of the good. b. the country will be an importer of the good. c. the country will be neither an exporter nor an importer of the good. d. Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the good, or neither.

a. the country will be an exporter of the good.

If the world price of textiles is higher than Vietnam's domestic price of textiles without trade, then Vietnam a. should import textiles. b. has a comparative advantage in textiles. c. should produce just enough textiles to meet its domestic demand. d. should refrain altogether from producing textiles.

b. has a comparative advantage in textiles.

What happens to the total surplus in a market when the government imposes a tax? a. Total surplus increases by the amount of the tax. b. Total surplus increases but by less than the amount of the tax. c. Total surplus decreases. d. Total surplus is unaffected by the tax.

c. Total surplus decreases.

Motor oil and gasoline are complements. If the price of motor oil increases, consumer surplus in the gasoline market a. decreases. b. is unchanged. c. increases. d. may increase, decrease, or remain unchanged.

d. may increase, decrease, or remain unchanged.

When a country allows trade and becomes an importer of steel, a. the losses of the domestic producers of steel exceed the gains of the domestic consumers of steel. b. the losses of the domestic consumers of steel exceed the gains of the domestic producers of steel. c. the gains of the domestic producers of steel exceed the losses of the domestic consumers of steel. d. the gains of the domestic consumers of steel exceed the losses of the domestic producers of steel.

d. the gains of the domestic consumers of steel exceed the losses of the domestic producers of steel.