If this country allows free trade in tricycles, a. consumers will gain more than producers will lose. b. producers and consumers will both gain equally. c. producers and consumers will both lose equally. d. producers will gain more than consumers will lose.

Which of the following best describes the economic effect that results from the government having a budget surplus? a. consumers save more and spend less, enabling long-term financial planning. b. overall demand decreases, reducing the incentive for producers to increase production. c. banks have more deposits, enabling them to make more loans to investors. d. government spending increases, increasing competition for goods and services and driving prices up.