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

Question

Quizplus · Accepted Answer

When a country allows trade and becomes an importer of coal, the domestic consumers of coal benefit from the cheaper prices of imported coal, while the domestic producers of coal face competition from foreign producers and may lose some of their market share or even be forced out of business. Therefore, the gains of the domestic consumers of coal exceed the losses of the domestic producers of coal.

When a Country Allows Trade and Becomes an Importer of Coal