If a Country Begins to Import a Good

question 23

Multiple Choice

If a country begins to import a good,

• A)it has a comparative advantage in producing that good
• B)it has a comparative advantage in consuming that good
• C)domestic consumers are made better off
• D)domestic producers are made better off
• E)both domestic consumers and domestic producers are harmed

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Definitions:

State Sales Taxes

Taxes imposed by state governments on the sale of goods and services within their jurisdiction.

Tax Policy

Guidelines and laws governing how taxes are structured, collected, and managed by a government to influence economic activity.

Budget Line

A graphical representation of all possible combinations of two goods that a consumer can afford with their income level.

Prices

The price necessary to obtain a good, service, or piece of property.