When a country allows trade and becomes an exporter of a good,
a. consumer surplus and producer surplus both increase.
b. consumer surplus and producer surplus both decrease.
c. consumer surplus increases and producer surplus decreases.
d. consumer surplus decreases and producer surplus increases.
d
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Which of the following is a factor determining the natural rate of unemployment?
A. real GDP B. the business cycle C. demographics D. the labor force participation rate
What is a zero-sum game? Explain with an example
What will be an ideal response?
The principle of comparative advantage implies that
A) only wealthy countries ultimately can benefit from international trade. B) every country can benefit from international trade. C) we should limit the extent to which people specialize. D) most people are harmed by trade.
Answer the following questions true (T) or false (F)
1. The production possibilities frontier represents the technically efficient combination of two products a business can produce in the current period given its existing resources and technology. 2. The price of the product and marginal revenue are identical under conditions of perfect competition. 3. The marginal rate of product transformation represents the slope of the production possibilities frontier.