When the nation of Econoland allows trade and becomes an exporter of televisions,
A)residents of Econoland who produce televisions become worse off; residents of Econoland who buy televisions become better off; and the economic well-being of Econoland rises.
B)residents of Econoland who produce televisions become worse off; residents of Econoland who buy televisions become better off; and the economic well-being of Econoland falls.
C)residents of Econoland who produce televisions become better off; residents of Econoland who buy televisions become worse off; and the economic well-being of Econoland rises.
D)residents of Econoland who produce televisions become better off; residents of Econoland who buy televisions become worse off; and the economic well-being of Econoland falls.

Question

Quizplus · Accepted Answer

When Econoland exports televisions, producers benefit from higher prices and increased sales, while consumers face higher prices, reducing their welfare. However, the overall economic well-being of Econoland rises due to gains from trade.

When the Nation of Econoland Allows Trade and Becomes an Exporter