Suppose a car is completely produced and assembled in Germany and is sold to the United States. In this example, if the United States restricts the purchase of the car from Germany, then the country whose overall welfare would be reduced by this policy would be:
A. the United States.
B. Germany.
C. neither Germany nor the United States.
D. both Germany and the United States.
Answer:D
Suppose a car is completely produced and assembled in Germany and is sold to the United States. In this example, if the United States restricts the purchase of the car from Germany, then the country whose overall welfare would be reduced by this policy would be:
A. the United States. B. Germany. C. neither Germany nor the United States. D. both Germany and the United States.