When a nation exports a good,its total surplus ________,and when it imports a good,its total surplus ________.
A) increases; increases
B) decreases; decreases
C) increases; decreases
D) decreases; increases
E) does not change; does not change

Question

Quizplus · Accepted Answer

When a nation exports a good, it benefits from higher producer surplus due to access to larger markets, thus increasing its total surplus. Similarly, when it imports a good, consumers benefit from a greater variety of goods at potentially lower prices, which also increases the nation's total surplus.

When a Nation Exports a Good,its Total Surplus ________,And When