When the Nation of Brownland First Permitted Trade with Other

question 191

Multiple Choice

When the nation of Brownland first permitted trade with other nations,domestic producers of wheat experienced an increase in producer surplus of $4 million and total surplus in Brownland's wheat market increased by $1 million.We can conclude that

• A)Brownland became an exporter of wheat.
• B)consumer surplus in Brownland increased by $3 million.
• C)the opening of trade caused the domestic supply curve for wheat in Brownland to shift to the left.
• D)this example is inconsistent with the economic theory of international trade.

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Definitions:

"More or less"

A phrase indicating that the exact figure or detail is flexible and may vary slightly.

Dimensions

Refers to measurements or aspects of objects, spaces, or abstract concepts, often expressed in terms of length, width, height, depth, or scope.

Discrepancy

A lack of compatibility or uniformity that leads to a difference between things that should be the same, often leading to conflict or confusion.

Avoid

To keep oneself from doing something, or to prevent a particular outcome from happening.