Which of the Following Is Correct? I

question 61

Multiple Choice

Which of the following is correct? i. Australian total surplus decreases when Australia exports a good.
Ii) Australian total surplus decreases when Australia imports a good.
Iii) Australian total surplus increases when Australia imports a good and when it exports a good.

• A) i and ii
• B) ii only
• C) iii only
• D) i only
• E) None of the above because the Australian total surplus does not change as a result of trade.