The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 106

Multiple Choice

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-Which of the following statements about international trade restrictions is true?

• A)They ensure that only efficient producers survive.
• B)They ensure that countries specialize only in those products that they can produce most efficiently.
• C)They harm domestic consumers in the majority of cases.
• D)They typically benefit foreign producers at the expense of domestic consumers.
• E)They ensure that higher-quality goods are provided at lower prices.

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Definitions:

Contract Curve

The contract curve represents a set of efficient allocations in the Edgeworth Box, where no participant could be made better off without making another participant worse off.

Pareto Optimal

A condition or situation in which it is impossible to make one party better off without making another party worse off, reflecting an optimal distribution of resources.

Initial Endowment

In economic theory, refers to the initial quantities of various assets or goods that an individual or entity possesses.

Competitive Equilibrium

A market state where supply equals demand, and no economic actors have the incentive to change their behavior.