When a country allows trade and becomes an importer of a good, which of the following is NOT true?

Question

Quizplus · Accepted Answer

If a country becomes an importer of a good, it means that it is buying that good from other countries instead of producing it domestically. This leads to a decrease in the price paid by domestic consumers of the good, as they now have access to a larger supply of the good at lower prices. However, the price received by domestic producers of the good decreases, as there is now more competition from foreign producers who can sell the good at lower prices. This leads to losses for domestic producers. Overall, the gains of domestic consumers exceed the losses of domestic producers. Therefore, option B is not true.

When a Country Allows Trade and Becomes an Importer of a Good