When a Country Allows Trade and Becomes an Importer of a Good

question 49

Multiple Choice

When a country allows trade and becomes an importer of a good,

• A)everyone in the country benefits.
• B)the gains of the winners exceed the losses of the losers.
• C)the losses of the losers exceed the gains of the winners.
• D)everyone in the country loses.

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Definitions:

Investment

The allocation of resources, usually money, into something with the expectation of generating income or profit in the future.

Capital

Assets used in the production of goods and services, such as machinery, buildings, or tools.

Production Efficiency

A situation where the economy is utilizing all of its resources efficiently, producing what people want at the lowest possible cost.

Production Possibility Frontier

Describes the maximum possible output combinations of two goods or services an economy can achieve when all resources are fully and efficiently utilized.