When a Country Allows Trade and Becomes an Exporter of a Good,which

question 12

Multiple Choice

When a country allows trade and becomes an exporter of a good,which of the following is not a consequence?

• A)The price paid by domestic consumers of the good increases.
• B)The price received by domestic producers of the good increases.
• C)The losses of domestic consumers of the good exceed the gains of domestic producers of the good.
• D)The gains of domestic producers of the good exceed the losses of domestic consumers of the good.

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Definitions:

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, due to higher market price.

Individual Producer Surplus

The net gain to an individual seller from selling a good; equal to the difference between the price received and the seller’s cost.

Phantom Tickets

Tickets for an event that are sold or promised to a customer but actually do not exist or are not available.

Producer Surplus

Producer surplus refers to the difference between what producers are willing to accept for a good or service versus what they actually receive, essentially measuring the benefit or surplus producers gain from transactions.