When a country allows trade and becomes an exporter of bicycles,
A)domestic producers of bicycles are worse off,domestic consumers of bicycles are better off,and the economic well-being of the country rises.
B)domestic producers of bicycles are worse off,domestic consumers of bicycles are better off,and the economic well-being of the country falls.
C)domestic producers of bicycles are better off,domestic consumers of bicycles are worse off,and the economic well-being of the country rises.
D)domestic producers of bicycles are better off,domestic consumers of bicycles are worse off,and the economic well-being of the country falls.

Question

Quizplus · Accepted Answer

When a country exports bicycles, domestic producers benefit from access to larger markets and potentially higher prices, while domestic consumers may face higher prices. Overall, the country's economic well-being improves due to gains from trade.

When a Country Allows Trade and Becomes an Exporter of Bicycles