Answer:
Meekertownian consumers are better off under free trade than they were before : True. It is because consumers can enjoy lower price for a similar product since the world price of meeker is lower than its domestic price, world suppliers can approach the Meekertown market and sell at a lower than domestic price to gain market share and enjoy higher margin comparing to the world market.
Meekertownian producers are better off under free trade than they were before: False. It is because their selling price is far above the world price, free trade will force them to either find ways to improve its products, reduce cost to maintain a more appropriate price level to compete with world supplier or to simply exit the market.
When a country is too small to affect the world price, allowing for free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade: False. In fact, a country will increase its total surplus when it allows free trade regardless of its relative impact to the world economy. Through free trade, it helps the country to re-allocate it resources to make goods and services more efficiently in the way that the country may exploit its competitive advantages over other countries in the world.
Explanation:
