Compared to the no-trade situation, when a country exports a good,
A) domestic consumers gain, domestic producers lose, and the gains outweigh the losses.
B) domestic producers gain, domestic consumers lose, and the gains outweigh the losses.
C) domestic consumers gain, domestic producers lose, and the losses outweigh the gains.
D) domestic producers gain, but domestic consumers lose an equal amount.

Question

Quizplus · Accepted Answer

When a country exports a good, domestic producers benefit from access to larger markets and potentially higher prices, while domestic consumers may face higher prices due to reduced domestic supply. The overall gains from trade typically outweigh the losses, as producers' gains and increased economic efficiency contribute positively to the economy.

Compared to the No-Trade Situation, When a Country Exports a Good