Multiple Choice
Refer to the figure below to answer the following questions. Figure 7.2.2
The figure shows the market for helicopters in Canada,where D is the domestic demand curve and S is the domestic supply curve.The world price is $36 million per helicopter.
-In Figure 7.2.2,if the economy moves from no trade to international trade,total surplus in Canada ________ by ________.
A) decreases;$2.56 billion
B) increases;$4.8 billion
C) decreases;$3.6 billion
D) decreases;$1.92 billion
E) increases;$1.92 billion
Correct Answer:

Verified
Correct Answer:
Verified
Q4: Tariffs and import quotas differ in that<br>A)one
Q5: A country moves from a situation of
Q6: Rent seeking is one reason why countries
Q7: Refer to the table below to answer
Q8: Canada imports cars from Japan.If Canada imposes
Q10: The proposition that protection is necessary to
Q11: Choose the statement that is incorrect.<br>A)Free trade
Q12: When a firms "dumps" some of its
Q13: A tariff _ the domestic price of
Q14: Compared to the situation before international trade,after