When a country opens up to trade in a good for which it has a comparative advantage,and the country begins to export the good,we can conclude that
A)the domestic price will fall after trade opens up.
B)both buyers and sellers in that country will be better off as a consequence of opening up the market to international trade.
C)the total surplus for this good will increase as a result of opening up the market to international trade.
D)opening the market to international trade will create a deadweight loss.

Question

When a country opens up to trade in a good for which it has a comparative advantage,and the country begins to export the good,we can conclude that
A)​the domestic price will fall after trade opens up.
B)​both buyers and sellers in that country will be better off as a consequence of opening up the market to international trade.
C)​the total surplus for this good will increase as a result of opening up the market to international trade.
D)​opening the market to international trade will create a deadweight loss.

Quizplus · Accepted Answer

Opening up to trade increases total surplus because it allows the country to specialize in producing goods for which it has a comparative advantage, leading to more efficient resource allocation and increased overall welfare.

When a Country Opens Up to Trade in a Good