Which of the Statements About the Gains from International Trade

question 66

Multiple Choice

Which of the statements about the gains from international trade is CORRECT?

• A) Everyone gains from international trade.
• B) Some people gain from international trade and some lose, though overall the gains exceed the losses.
• C) Some people gain from international trade and some lose; though overall the losses exceed the gains.
• D) Everyone loses from international trade.

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Definitions:

Economic Rent

Any payment to a resource provider or seller of output in excess of the economic cost (opportunity cost) of providing that resource or output.

Economic Rent

The extra income earned by a resource over and above its opportunity cost, often due to natural advantages or market conditions.

Inelastic Demand Curve

Represents a situation where the demand for a product changes by a smaller percentage than changes in its price, indicating consumers' insensitivity to price changes.