When a Certain Nation Abandoned a Policy of Prohibiting International

question 234

Multiple Choice

When a certain nation abandoned a policy of prohibiting international trade in automobiles in favor of a free-tree policy,the result was that the country began to import automobiles.The change in policy improved the well-being of that nation in the sense that

• A)both producers of automobiles and consumers of automobiles in that nation became better off as a result.
• B)the gains to automobile producers in that nation exceeded the losses of the automobile consumers in that nation.
• C)the gains to automobile consumers in that nation exceeded the losses of the automobile producers in that nation.
• D)even though total surplus in that nation decreased,it was still true that consumer surplus and producer surplus increased.

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