When the Nation of Venezia Allows Trade and as a Result

question 8

Multiple Choice

When the nation of Venezia allows trade and as a result becomes an exporter of shoes,

• A) residents who produce shoes become worse off; residents who buy shoes become better off; and the economic well-being of Venezia rises.
• B) residents who produce shoes become worse off; residents who buy shoes become better off; and the economic well-being of Venezia falls.
• C) residents who produce shoes become better off; residents who buy shoes become worse off; and the economic well-being of Venezia rises.
• D) residents who produce shoes become better off; residents who buy shoes become worse off; and the economic well-being of Venezia falls.

---

Definitions:

Environmental Degradation

The deterioration of the environment through depletion of resources, destruction of ecosystems, and pollution.

Property Rights

The legal rights to use, control, and derive benefit from property, whether it is tangible or intangible.

Privately Owned

Something that is owned by individuals or corporations rather than the government or the public.

Pollution Liability

Legal responsibility for damages caused by releasing pollutants into the environment.