When an economy moves from autarky to free international trade, for industries in 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

Quizplus · Accepted Answer

The Answer of When an economy moves from autarky to free international trade, for industries in 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.

When an Economy Moves from Autarky to Free International Trade