Which of the Following Statements Is True

question 54

Multiple Choice

Which of the following statements is true?

• A)All individuals in both countries are made better off as a result of international trade.
• B)Within each country, some individuals are made better off as a result of international trade, but one of the countries will be worse off overall.
• C)Although some individuals are made better off as a result of international trade, both countries may be made worse off overall.
• D)Each country as a whole is made better off as a result of international trade, but individuals within each country may be made worse off.

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Definitions:

Consumer Surplus

The discrepancy between the amount consumers are prepared to pay for a product or service and the price they actually spend.

Consumer Surplus

Consumer surplus is the difference between the total amount that consumers are willing and able to pay for a good or service and the total amount they actually pay.

Consumer Surplus

The contrast between the theoretical sum consumers are prepared to pay and the practical sum they pay for a good or service.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service compared to its market price, representing their net benefit.