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:

Thrombin

An enzyme in blood plasma that causes the clotting of blood by converting fibrinogen to fibrin.

Systole

Contractile phase of the cardiac cycle.

Diastole

Relaxation phase of the cardiac cycle.

Cardiac Cycle

The sequence of events that occurs in the heart during one heartbeat, including contraction (systole) and relaxation (diastole) of the atria and ventricles.