Aquilonia Has Decided to End Its Policy of Not Trading

question 109

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 cinnamon,exporting steel,and neither importing nor exporting rugs.What are the effects

• A)Domestic producers of cinnamon are now better off, and consumers of cinnamon are worse off; producers of steel are worse off, and consumers of steel are better off; both producers and consumers of rugs are unaffected.
• B)Domestic producers of cinnamon are now worse off, and consumers of cinnamon are better off; producers of steel are better off, and consumers of steel are worse off; both producers and consumers of rugs are unaffected.
• C)Domestic producers of cinnamon are now worse off, and consumers of cinnamon are better off; producers of steel are worse off, and consumers of steel are better off; both producers and consumers of rugs are unaffected.
• D)Domestic producers of cinnamon, steel, and rugs are worse off and consumers of cinnamon, steel and rugs are better off.This is because trade always harms producers and helps consumers.

---

Definitions:

Binge Drinking

The consumption of an excessive amount of alcohol in a short period of time, with the intention of becoming intoxicated.

Party-centered Lifestyle

A way of life characterized by frequent participation in social gatherings or parties, often prioritizing social life above other responsibilities.

Chronic Stage

A phase of an illness or condition that is long-lasting and persistently present, often requiring ongoing management.

Alcoholism

A chronic disease characterized by uncontrolled drinking and a preoccupation with alcohol, despite its negative effects on a person’s health, relationships, and social standing.