4. Welfare Impact of Trade Continue to refer to the previous diagram: https://drive.google.com/file/d/1sua-NWRPupuFKM1JbN9g6TuBmRxyAjgC/view?usp=sharing Which of the following statements is true about Econland when it goes from not participating in international trade to participating in international trade? Suppose there is no government policy, and that the world price is $2. Overall, Econland is better off with international trade because consumers and producers are both better off than when they were not trading with another country. Overall, Econland is better off with international trade, but consumers are worse off and producers are better off than when they were not trading with another country. Overall, Econland is worse off with international trade because total surplus is lower than when they were not trading with another country. Overall, Econland is worse off with international trade, but consumers are better off and producers are worse off than when they were not trading with another country. o Overall, Econland is better off with international trade, but consumers are better off and producers are worse off than when they were not trading with another country.

4. Welfare Impact of Trade Continue to refer to the previous diagram: https://drive.google.com/file/d/1sua-NWRPupuFKM1JbN9g6TuBmRxyAjgC/view?usp=sharing Which of the following statements is true about Econland when it goes from not participating in international trade to participating in international trade? Suppose there is no government policy, and that the world price is $2. Overall, Econland is better off with international trade because consumers and producers are both better off than when they were not trading with another country. Overall, Econland is better off with international trade, but consumers are worse off and producers are better off than when they were not trading with another country. Overall, Econland is worse off with international trade because total surplus is lower than when they were not trading with another country. Overall, Econland is worse off with international trade, but consumers are better off and producers are worse off than when they were not trading with another country. o Overall, Econland is better off with international trade, but consumers are better off and producers are worse off than when they were not trading with another country.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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