If the Domestic Price of a Good Is Below the Prices

question 236

Multiple Choice

If the domestic price of a good is below the prices in other countries and free trade is opened up, then in terms of pricing

• A) domestic producers lose, and foreign producers gain.
• B) foreign consumers lose, and foreign producers gain.
• C) domestic consumers lose, and domestic producers gain.
• D) both foreign and domestic consumers lose.

---

Definitions:

Pessimism

A predisposition towards observing the most negative aspects of situations or expecting the most unfavorable outcomes; an absence of optimism or trust in what lies ahead.

Agoraphobia

A type of anxiety disorder characterized by an intense fear of places or situations from which escape might be difficult or embarrassing, or in which help may not be available in the event of a panic attack.

Closed Spaces

Limited or confined areas with restricted exits, often causing discomfort or fear to some individuals.

Public Places

Areas that are open and accessible to all members of the community, including parks, libraries, and streets.