If an Import-Competing Firm Is the Only Domestic Producer of a Good

question 12

Multiple Choice

If an import-competing firm is the only domestic producer of a good, then a transition from autarky to free trade will ________ domestic price, ________ producer surplus, ________ consumer surplus, and ________ overall domestic national welfare.

• A) increase; increase; increase; increase
• B) decrease; decrease; decrease; decrease
• C) decrease; decrease; increase; increase
• D) increase; increase; decrease; decrease
• E) increase; increase; decrease; increase

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Definitions:

Specific Subject Matter

The particular focus or theme of a legal document, agreement, or discussion.

Destroyed

Rendered useless or completely obliterated.

Breach Of Contract

Occurs when one party in a binding agreement fails to deliver according to the terms of the agreement.

Anticipation Of Delivery

Expectation or preparation for the receipt of goods or items that have been ordered, prior to their actual arrival.