Question

When a certain nation abandoned a policy of prohibiting international trade in automobiles in favor of a free-tree policy, the result was that the country began to import automobiles. The change in policy improved the well-being of that nation in the sense that __________.

Answer 1

the gains to automobile consumers in that nation exceeded the losses of the automobile producers in that nation.

Step-by-step explanation:

Since the abandonment of prohibition of importation of automobiles in the country, to favour free trade policy of the said commodity, that eventually led to more importation of automobiles into the the country, which in turn favour the well being of the nation, this implies that, the gains to automobile consumers in that nation exceeded the losses of the automobile producers in that nation.