When a nation imports a good, its ________ surplus increases and its ________ surplus increases.

Question

Quizplus · Accepted Answer

When a nation imports a good, its total surplus increases because the value of the imported goods is added to the nation's total output. Its consumer surplus also increases because consumers are able to purchase the imported goods at a lower price than they would have to pay for domestically produced goods.

When a Nation Imports a Good, Its ________ Surplus Increases