Figure 9-6
-Zelzar has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. Which groups in Zelzar are better off as a result of the new free-trade policy?
A)producers of incense and consumers of steel
B)consumers of all three goods
C)consumers of incense and producers of rugs
D)producers of steel and consumers of incense

Question

Figure 9-6 
-Zelzar has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. Which groups in Zelzar are better off as a result of the new free-trade policy?
A)producers of incense and consumers of steel 
B)consumers of all three goods 
C)consumers of incense and producers of rugs 
D)producers of steel and consumers of incense

Quizplus · Accepted Answer

When Zelzar ends its trade restrictions, it starts importing incense, which benefits consumers of incense due to likely lower prices or better quality from abroad. It exports steel, benefiting producers of steel as they gain access to larger markets. The situation with rugs does not directly benefit or harm producers or consumers since there is no change in their trade status. Therefore, producers of steel and consumers of incense are better off.

Figure 9-6 -Zelzar Has Decided to End Its Policy of Not Trading