When the Nation of Isoland Opens Up Its Steel Market

question 142

Multiple Choice

When the nation of Isoland opens up its steel market to international trade,that change

• A)creates winners and losers,regardless of whether Isoland ends up exporting or importing steel.
• B)results in a decrease in total surplus,regardless of whether Isoland ends up exporting or importing steel.
• C)creates winners,but no losers,if Isoland ends up exporting steel.
• D)creates losers,but no winners,if Isoland ends up importing steel.

---

Definitions:

After taxes

Refers to the net income after all tax expenses have been deducted.

Compounded Monthly

A method of calculating interest whereby the accumulated interest is added back to the principal sum, and future interest is calculated on the new total each month.

Student Loans

Borrowed money that is used to pay for higher education expenses, which must be repaid with interest.

Compounded Monthly

A method where interest earnings are calculated and added to the principal sum each month, leading to increased interest in the next period.