When a Country Allows Trade and Exports a Good

question 21

Multiple Choice

When a country allows trade and exports a good,

• A) domestic consumers are better off, domestic producers are worse off, and the nation is worse off because the losses of the losers exceed the gains of the winners.
• B) domestic consumers are better off, domestic producers are worse off, and the nation is better off because the gains of the winners exceed the losses of the losers.
• C) domestic producers are better off, domestic consumers are worse off, and the nation is worse off because the losses of the losers exceed the gains of the winners.
• D) domestic producers are better off, domestic consumers are worse off, and the nation is better off because the gains of the winners exceed the losses of the losers.

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Definitions:

Payroll Expense

The total amount of money a business pays to its employees as wages or salaries, including taxes and benefits, for a specific period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Rate of Return on Investment

A measure of the profitability or efficiency of an investment, calculated as the ratio of net profits to the initial cost of the investment.

Balance Sheet

A report that outlines the financial standings of a company, including assets, obligations, and owners' equity, at a given time.