Producer surplus is equal to the area
A) under the demand curve and above the supply curve.
B) above the supply curve and below the price line.
C) under the demand curve.
D) under the supply curve.
E) under the demand curve and above the price line.
Question 2 - Countries that have high rates of savings also have
A) high rates of investment.
B) low rates of investment.
C) stock market bubbles.
D) low rates of growth.
E) no international trade.
Question 3 - Consumer surplus is equal to the area
A) under the demand curve and above the supply curve.
B) above the supply curve and below the price line.
C) under the demand curve.
D) under the supply curve.
E) under the demand curve and above the price line.
Question 4 - The trade-to-GDP ratio for the United States reached its lowest point of the last 100 years
A) around 1900.
B) around 1970.
C) around World War II.
D) around World War I.
E) around 2008.
Question 5 - Based on Scenario 6.1 above, if a tariff of 20 percent is placed on imports of dining room tables, and another tariff of 50 percent is placed on imports of wood and parts, then the effective rate of protection on tables made in the United States is
A) 70 percent.
B) 50 percent.
C) 20 percent.
D) 12.5 percent.
E) 0 percent.
Question 6 - Based on Scenario 6.1 above, if a tariff of 20 percent is placed on imports of dining room tables, the effective rate of protection is
A) 20 percent.
B) 25 percent.
C) 30 percent.
D) 40 percent.
E) There is not enough information to tell.
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