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Domestic Producers of a Good Become Better Off,and Domestic Consumers

Question 259

Multiple Choice

Domestic producers of a good become better off,and domestic consumers of a good become worse off,when a country begins allowing international trade in that good and


A) the country becomes an importer of the good as a result.
B) the world price exceeds the domestic price of the good that prevailed before international trade was allowed.
C) other countries have a comparative advantage,relative to the country in question,in producing the good.
D) total surplus does not change as a result.

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