Refer to the figure above. Which of the following best describes a method to compensate the group that was made worse off when Barylia opened to free trade?
A) The buyers could be taxed and the tax revenue could be used to compensate the sellers.
B) The sellers could be taxed and the tax revenue could be used to compensate the buyers.
C) Barylia could sell the calculators at a price below the domestic equilibrium price in the global market.
D) Barylia could sell the calculators at a price above the world price in the global market.
B
Economics
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If the demand for a good increases because consumer income increases, the good is a(n):
a. inferior good. b. normal good. c. necessity good. d. luxury good.
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Price controls date back to
A. World War II. B. the U.S. Revolutionary War. C. thousands of years, at least back to ancient Babylonia. D. the 1970s. E. the last 20 years.
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