1) When a nation imports a good, its ________ surplus decreases and its ________ surplus increases.
A. producer, producer
B. producer, total
C. consumer, consumer
D. consumer, producer
2) A country exports a good if ________.
A. it has a high opportunity cost of production
B. the world price of the good is below the countryâ€TMs no-trade equilibrium price
C. the world price of the good is above the countryâ€TMs no-trade equilibrium price
D. it cannot import the good
3) Dumping is defined as a situation where ________.
A. domestic producers sell a product at prices below the cost of production
B. foreign producers sell a product at a price below the cost of production
C. foreign producers sell a product at a price above a fair level
D. domestic producers cut production to drive up domestic prices
4) Trade is often restricted because the ________.
A. total gain to all producers is larger than the total loss to all consumers
B. total gain to all producers is smaller than the total loss to all consumers
C. gain per producer is larger than the loss per consumer
D. gain per producer is less than the loss per consumer
5) International trade benefits ________.
A. the exporter
B. the importer
C. the exporter and importer
D. neither the exporter nor importer