Assume an economy moves from autarky to free international trade.Which of the following statements is true about the export sector?
A.Consumer and producer surplus both rise, and the economy as a whole gains.
B.Consumer surplus rises, producer surplus falls, and the economy as a whole gains.
C.Consumer surplus falls, producer surplus rises, and the economy as a whole gains.
D.The decrease in either consumer surplus or producer surplus is sufficiently large to cause net losses for the economy.

Question

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The Answer of Assume an economy moves from autarky to free international trade.Which of the following statements is true about the export sector?
A.Consumer and producer surplus both rise, and the economy as a whole gains.
B.Consumer surplus rises, producer surplus falls, and the economy as a whole gains.
C.Consumer surplus falls, producer surplus rises, and the economy as a whole gains.
D.The decrease in either consumer surplus or producer surplus is sufficiently large to cause net losses for the economy.

Assume an Economy Moves from Autarky to Free International Trade