When a country allows for trade and becomes an exporter of the good, which of the following would be true?
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2 marks, −1International EconomicsTheories of international tradeSpecialisation and the gains from tradeEasyabout 1 min
JNU SIS 2017 Question 6: Theories of international trade
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When a country allows for trade and becomes an exporter of the good, which of the following would not be true? (A) The price paid by the domestic consumer of the good increases. (B) The price received by the domestic producers of the good increases. (C) The losses of domestic consumers exceed the gains of domestic producers. (D) The gains of domestic producers exceed the losses of domestic consumers.
Theories of international trade has come up 151 times in 6 exams since 2006.
What this question tests
This question is on Specialisation and the gains from trade, part of Theories of international trade in International Economics.
How specialisation raises consumption possibilities, including complete and incomplete specialisation.
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