Multiple Choice
Figure 9-2. The domestic country is China.

-Refer to Figure 9-2.If China were to abandon a no-trade policy in favor of a free-trade policy,
A) Chinese producers of pencil sharpeners would become worse off.
B) Chinese consumers of pencil sharpeners would become better off.
C) total surplus in the Chinese economy would increase.
D) All of the above are correct.
Correct Answer:
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