If Freedonia Changes Its Laws to Allow International Trade in Software

question 55

Multiple Choice

If Freedonia changes its laws to allow international trade in software and the world price is higher than its domestic price,then it must be the case that

• A)both consumer surplus and producer surplus increase.
• B)consumer surplus increases and producer surplus decreases.
• C)consumer surplus decreases and producer surplus increases.
• D)both consumer surplus and producer surplus decrease.

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Definitions:

Ethical Theory

A system of principles that helps determine what is morally right and wrong, guiding ethical decision-making.

Political Stand

An individual's or group's position or viewpoint on political issues or policies, often reflecting their values and beliefs.

Moral Development

The process of gradually learning and internalizing societal norms and values that determine what is right or wrong behavior, significantly influencing personal and social conduct.

Destructive Leader

A leader whose actions, intentions, or management style significantly harms the well-being of their followers or the organization.