When a Country Abandons a No-Trade Policy,adopts a Free-Trade Policy,and

question 194

Multiple Choice

When a country abandons a no-trade policy,adopts a free-trade policy,and becomes an importer of a particular good,

• A)consumer surplus increases and total surplus increases in the market for that good.
• B)consumer surplus increases and total surplus decreases in the market for that good.
• C)consumer surplus decreases and total surplus increases in the market for that good.
• D)consumer surplus decreases and total surplus decreases in the market for that good.

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Definitions:

Comparative Advantage

A principle in economics that states a party's ability to produce a particular good or service at a lower opportunity cost than its trade partners, which can lead to beneficial trade.

Typing Reports

The act of creating written documents or records, typically using a keyboard or typewriter, which detail specific information or findings.

Comparative Advantage

The ability of a country, firm, or individual to produce a good or service at a lower opportunity cost than competitors.

Brownies

A square or rectangular chocolate baked treat, commonly with a dense, moist texture.