If a Country Allows Trade And, for a Certain Good

question 58

Multiple Choice

If a country allows trade and, for a certain good, the domestic price without trade is higher than the world price,

• A) the country will be an exporter of the good.
• B) the country will be an importer of the good.
• C) the country will be neither an exporter nor an importer of the good.
• D) Additional information is needed about demand to determine whether the country will be an exporter of the good, an importer of the good, or neither.

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