When a Country That Imported a Particular Good Abandons a Free-Trade

question 16

Multiple Choice

When a country that imported a particular good abandons a free-trade policy and adopts a no-trade policy,

• 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.

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Definitions:

Register

To record or enroll officially, such as a name or information, in a list, directory, or database.

S Corporation

A special designation of corporation that allows for pass-through taxation, where the corporation's income is taxed at the shareholder level, rather than at the corporate level.

Shareholders

Individuals or entities that own shares in a corporation, giving them a claim on part of the corporation's assets and earnings.

U.S. Citizens

Individuals who possess citizenship of the United States, either by birth or naturalization.