International trade is definitely in the social interest if

Question

Quizplus · Accepted Answer

International trade increases the total surplus in the economy, which includes the consumer and producer surplus. Thus, option E is the correct choice. Options A, B, C, and D are not sufficient on their own because an increase in either consumer or producer surplus does not necessarily imply that international trade is in the social interest, as the other party may experience a decrease in surplus. Only an increase in the total surplus can indicate that both the consumers and producers are better off with international trade.

International Trade Is Definitely in the Social Interest If