Consider a Country That Is Initially Autarkic and Then Engages

question 30

Multiple Choice

Consider a country that is initially autarkic and then engages freely in international trade.If a country has a comparative advantage in the production of soybeans,it will most probably

• A)increase the production of soybeans for domestic consumption.
• B)derive no advantage from any trade in soybeans.
• C)increase the production of soybeans to allow for the export of soybeans.
• D)import soybeans
• E)decrease the production of soybeans for domestic consumption.