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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Definitions:

Obesity

A medical condition in which excess body fat has accumulated to the extent that it may have a negative effect on health.

Communicable Disease

Illnesses caused by viruses, bacteria, or other pathogens that can be spread directly or indirectly from one person to another.

Nonsmokers

Individuals who do not engage in the activity of smoking tobacco products.

Noncommunicable Diseases

Chronic diseases not passed from person to person, such as heart disease, diabetes, and cancer.