A country opens up to trade and exports computer chips. In the computer chip market, surplus has been redistributed from
A) producers to consumers.
B) government to consumers.
C) producers to government.
D) consumers to producers.

Question

Quizplus · Accepted Answer

When a country opens up to trade and exports computer chips, the demand for those chips increases on the international market. This leads to higher prices and profits for the producers, effectively redistributing economic surplus from consumers, who now pay more, to producers.

A Country Opens Up to Trade and Exports Computer Chips