Aquilonia Has Decided to End Its Policy of Not Trading

question 91

Multiple Choice

Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing incense,exporting steel,and neither importing nor exporting rugs.We can conclude that Aquilonia's new free-trade policy has

• A)increased consumer surplus and producer surplus in the incense market.
• B)increased consumer surplus in the steel market and left producer surplus in the rug market unchanged.
• C)decreased consumer surplus in both the steel and rug markets.
• D)decreased consumer surplus in the steel market and increased total surplus in the incense market.

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Definitions:

Public Health

A field of study and practice focused on protecting and improving the health of people and their communities through education, policy-making, and research for disease and injury prevention.

Community

A group of people living in the same place or having a particular characteristic in common, often marked by a sense of belonging or shared identity.

Common Good

The benefit or interests of all involved parties or the wider community, opposed to the interests of a select group.

Social Rules

Guidelines for behavior that are accepted by a group; they govern interactions among individuals within societies to maintain order.