When a Country That Exported a Particular Good Abandons a Free-Trade

question 302

Multiple Choice

When a country that exported a particular good abandons a free-trade policy and adopts a no-trade policy,

• 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:

Deferred Annuity

An insurance contract in which periodic payments begin at some future date, typically used as a retirement savings vehicle.

Ordinary Annuity

An ordinary annuity is a series of equal payments made at the end of consecutive periods over a fixed length of time.

Deferred Annuity

An insurance product that provides for the accumulation of capital on a tax-deferred basis, with payouts commencing at a future date, typically used as a retirement planning tool.

Ordinary Annuity

A series of equal payments made at regular intervals, with the typical assumption that each payment occurs at the end of a period.