If Belgium Exports Chocolate to the Rest of the World

question 15

True/False

If Belgium exports chocolate to the rest of the world, then Belgian chocolate producers benefit from higher producer surplus, Belgian chocolate consumers are worse off because of lower consumer surplus, and total surplus in Belgium increases because of the exports of chocolate.

---

Definitions:

Coincidence of Wants

A situation in a barter system where two parties each possess an item or service the other desires, facilitating an exchange without the need for a medium of exchange like money.

Exchange and Trade

The act of giving something of value in return for something else, pivotal for the functioning of economies and fostering economic relationships.

Centrally Planned Economy

An economic system where the government makes all decisions about what goods and services are produced, how they are produced, and who receives them.

Profits

The financial gain obtained from the difference between the amount earned and the amount spent in buying, operating, or producing something.