Domestic producers of a good become worse off, and domestic consumers of a good become better off, when a country begins allowing international trade in that good and
a. the country becomes an importer of the good as a result.
b. the world price exceeds the domestic price of the good that prevailed before international trade was allowed.
c. the country in question has a comparative advantage, relative to other countries, in producing the good.
d. total surplus does not change as a result.
a
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Suppose the government mandates the installation of a certain type of pollution abatement equipment for the leather tannery industry
For some firms in the industry, installing this equipment may not be the most cost effective method of reducing pollution. Indicate whether the statement is true or false
Tariffs can be used to redistribute income from
A) abundant factors to scarce factors. B) consumers to domestic producers. C) from one country to another. D) All of the above.