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A Country Moves from a Situation of No Trade to a Situation

Question 46

Multiple Choice

A country moves from a situation of no trade to a situation where it imports a good.Which of the following does not occur in the market for this good in the importing country?


A) Deadweight loss decreases.
B) Consumer surplus increases.
C) Producer surplus decreases.
D) Workers in the domestic industry lose.
E) Total surplus increases.

Correct Answer:

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