When a Country Allows Trade and Imports a Good

question 33

Multiple Choice

When a country allows trade and imports a good,

• A) domestic producers are worse off, domestic consumers are better off, and the nation is worse off because the losses of the losers exceed the gains of the winners.
• B) domestic consumers are worse off, domestic producers are better off, and the nation is worse off because the losses of the losers exceed the gains of the winners.
• C) domestic producers are worse off, domestic consumers are better off, and the nation is better off because the gains of the winners exceed the losses of the losers.
• D) domestic consumers are worse off, domestic producers are better off, and the nation is better off because the gains of the winners exceed the losses of the losers.

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Definitions:

Selling Price

The amount of money a buyer pays to acquire a product or service from a seller.

Markup Percent

A percentage added to the cost price to determine the selling price.

Cost

Cost refers to the amount of money or resources expended to obtain a good or service, including production, materials, labor, and other expenses.

Markup Percent

The percentage increase applied to the cost price of goods to calculate their selling price.