Suppose Iceland Goes from Being an Isolated Country to Being

question 53

Multiple Choice

Suppose Iceland goes from being an isolated country to being an exporter of coats.As a result,

• A)consumer surplus increases for consumers of coats in Iceland.
• B)producer surplus increases for producers of coats in Iceland.
• C)total surplus remains unchanged in the coat market in Iceland.
• D)it is reasonable to infer that other countries have a comparative advantage over Iceland in coat production.

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A long-lasting condition that can be controlled but not cured.

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