When a country allows trade and becomes an exporter of a good,
A) the gains of the domestic producers of the good exceed the losses of the domestic consumers of the good.
B) the gains of the domestic consumers of the good exceed the losses of the domestic producers of the good.
C) the losses of the domestic producers of the good exceed the gains of the domestic consumers of the good.
D) the losses of the domestic consumers of the good exceed the gains of the domestic producers of the good.

Question

Quizplus · Accepted Answer

When a country exports a good, domestic producers benefit from access to larger markets and higher prices, while domestic consumers face higher prices. The overall gains to producers typically exceed the losses to consumers, leading to a net gain for the economy.

When a Country Allows Trade and Becomes an Exporter of a Good