The real income of domestic producers and consumers can be increased by:

Question

Quizplus · Accepted Answer

Technological progress allows domestic producers to increase their efficiency and produce more output, which can lead to higher incomes. International trade allows domestic producers to sell their output to a larger market, increasing their potential sales and profits. It also allows domestic consumers to access a wider variety of goods at lower prices, increasing their purchasing power and real income. Therefore, both technological progress and international trade can increase the real income of domestic producers and consumers.

The Real Income of Domestic Producers and Consumers Can Be