Trade enhances the economic well-being of a nation in the sense that:

a. trade puts downward pressure on the prices of all goods.

b. both domestic producers and domestic consumers of a good become better off with trade, regardless of whether the nation imports or exports the good in question.

c. the gains of domestic producers of a good exceed the losses of domestic consumers of a good, regardless of whether the nation imports or exports the good in question.

d. trade results in an increase in total surplus compared with a closed economy.

Question

Logan Hammond

Business

5 January, 18:52

Trade enhances the economic well-being of a nation in the sense that:

a. trade puts downward pressure on the prices of all goods.

b. both domestic producers and domestic consumers of a good become better off with trade, regardless of whether the nation imports or exports the good in question.

c. the gains of domestic producers of a good exceed the losses of domestic consumers of a good, regardless of whether the nation imports or exports the good in question.

d. trade results in an increase in total surplus compared with a closed economy.

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Answers (1)

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Asia Blackburn · Answer 1

D. trade results in an increase in total surplus compared with a closed economy.

Explanation:

Trade enhances the economic well-being of a nation in the sense that trade results in an increase in total surplus compared with a closed economy.