Figure 9-6 -Zelzar Has Decided to End Its Policy of Not Trading

question 117

Multiple Choice

Figure 9-6
-Zelzar has decided to end its policy of not trading with the rest of the world. When it ends its trade restrictions, it discovers that it is importing incense, exporting steel, and neither importing nor exporting rugs. Which groups in Zelzar are better off as a result of the new free-trade policy?

• A)producers of incense and consumers of steel
• B)consumers of all three goods
• C)consumers of incense and producers of rugs
• D)producers of steel and consumers of incense

---

Definitions:

Nominal Wage Rate

The amount of money paid per hour, day, or other unit of work, without adjusting for inflation.

Profit-maximizing

The method or approach of modifying production and sales to maximize profits.

Output

The total amount of goods or services produced by a company, industry, or economy.

Persimmon Orchard

A Persimmon Orchard is a plantation or area specifically dedicated to growing persimmon trees, which bear the edible fruit known as persimmons.