5 3 2 A B D F G I 8 11 S 7) Use the graph above to answer this question. Initially, Spartania is an autarchy and there is no international trade allowed. Then, the country decides to allow free trade. The world price is $2. Which of the following areas best represents the additional economic surplus created when free trade is permitted? A) G+H B) I C) C+E D) A+B+C E) D+F+E+G+H

ENGR.ECONOMIC ANALYSIS
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ISBN:9780190931919
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Chapter1: Making Economics Decisions
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7) Use the graph above to answer this question. Initially, Spartania is an autarchy and there is no
international trade allowed. Then, the country decides to allow free trade. The world price is $2.
Which of the following areas best represents the additional economic surplus created when
free trade is permitted?
A) G+H
B) I
C) C+E
D) A+B+C
E) D+F+E+G+H
Transcribed Image Text:5 3 2 A B D F 4 C E G I 8 H D S 11 I 7) Use the graph above to answer this question. Initially, Spartania is an autarchy and there is no international trade allowed. Then, the country decides to allow free trade. The world price is $2. Which of the following areas best represents the additional economic surplus created when free trade is permitted? A) G+H B) I C) C+E D) A+B+C E) D+F+E+G+H
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