When the nation of Duxembourg allows trade and as a result becomes an importer of software,
A)residents who produce software become worse off;residents who buy software become better off;and the economic well-being of Duxembourg rises.
B)residents who produce software become worse off;residents who buy software become better off;and the economic well-being of Duxembourg falls.
C)residents who produce software become better off;residents who buy software become worse off;and the economic well-being of Duxembourg rises.
D)residents who produce software become better off;residents who buy software become worse off;and the economic well-being of Duxembourg falls.

Question

Quizplus · Accepted Answer

When Duxembourg becomes an importer of software, residents who produce software might become worse off since they will face increased competition from foreign producers. On the other hand, residents who buy software will become better off since they will have access to a wider variety of software at lower prices. Overall, the economic well-being of Duxembourg is likely to rise due to the gains from trade.

When the Nation of Duxembourg Allows Trade and as a Result