Aquilonia Has Decided to End Its Policy of Not Trading

question 99

Multiple Choice

Aquilonia has decided to end its policy of not trading with the rest of the world.When it ends its trade restrictions,it discovers that it is importing incense,exporting steel,and neither importing nor exporting rugs.Which groups in Aquilonia are better off as a result of the new free-trade policy?

• A) producers of incense and consumers of steel
• B) consumers of all three goods
• C) consumers of incense and producers of rugs
• D) producers of steel and consumers of incense

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The parts that make up Gross Domestic Product, generally categorized as consumption, investment, government spending, and net exports.

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Gross Domestic Product, the total monetary value of all final goods and services produced within a country's borders in a specific time period.

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