When a country abandons a no-trade policy, adopts a free-trade policy, and becomes an exporter of a particular good,
a. producer surplus increases and total surplus increases in the market for that good.
b. producer surplus increases and total surplus decreases in the market for that good.
c. producer surplus decreases and total surplus increases in the market for that good.
d. producer surplus decreases and total surplus decreases in the market for that good.
a
You might also like to view...
Rapid population growth in Malthus's theory is constrained through:
A) higher fertility and reduced mortality. B) reduced fertility and higher mortality. C) higher fertility and mortality. D) reduced fertility and mortality.
Refer to the diagram, in which solid arrows reflect real flows; broken arrows are monetary flows. Flow (7) might represent:
A. a transfer payment to disabled persons.
B. wage payments to public school teachers.
C. subsidies to corporations to stimulate exports.
D. the U.S. Bureau of Engraving and Printing's expenditures for paper.