Compared to the No-Trade Situation, When a Country Exports a Good

question 134

Multiple Choice

Compared to the no-trade situation, when a country exports a good,

• A) domestic consumers gain, domestic producers lose, and the gains outweigh the losses.
• B) domestic producers gain, domestic consumers lose, and the gains outweigh the losses.
• C) domestic consumers gain, domestic producers lose, and the losses outweigh the gains.
• D) domestic producers gain, but domestic consumers lose an equal amount.

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Definitions:

Pluralistic Norm Theory

A theory suggesting that within a diverse society, multiple norms and values coexist and influence behavior.

Cultural Values Theory

The view that people in groups use members’ opinions about the position valued in the wider culture, and then adjust their views in that direction for social approval reasons.

Group Polarisation

The tendency of a group to make decisions that are more extreme than the initial inclination of its members.

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.