When a country allows trade and becomes an exporter of a good,which of the following is not a consequence?
A)The price paid by domestic consumers of the good increases.
B)The price received by domestic producers of the good increases.
C)The losses of domestic consumers of the good exceed the gains of domestic producers of the good.
D)The gains of domestic producers of the good exceed the losses of domestic consumers of the good.

Question

Quizplus · Accepted Answer

When a country becomes an exporter, domestic producers benefit from higher prices and increased sales, while consumers face higher prices. However, the overall gains to producers typically exceed the losses to consumers, making option C incorrect.

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