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

question 36

Multiple Choice

When a country allows trade and becomes an importer of a good, which of the following is NOT true?

• A)the gains of domestic consumers exceed the losses of domestic producers
• B)the losses of domestic producers exceed the gains of domestic consumers
• C)the price paid by domestic consumers of the good decreases
• D)the price received by domestic producers of the good decreases

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Definitions:

Liabilities

Future sacrifices of economic benefits that an entity is obliged to make to other entities as a result of past transactions or other past events.

Raising Funds

The process of gathering financial resources from various sources to support business operations, projects, or investments.

Statement Of Cash Flows

A financial report that provides aggregate data regarding all cash inflows and outflows a company receives from its operational, investing, and financing activities.