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

question 290

Multiple Choice

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

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

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Definitions:

Negative Reinforcement

A psychological principle where the removal of an adverse stimulus strengthens a behavior.

Behavior

Behavior refers to the actions or reactions of organisms or systems, usually in response to external stimuli, within their environment.

Increase

A rise in the amount, number, or degree of something.

Punishment

A process by which a consequence immediately follows a behavior which decreases the future likelihood of that behavior occurring.