Suppose a Country Abandons a No-Trade Policy in Favor of a Free-Trade

question 272

Multiple Choice

Suppose a country abandons a no-trade policy in favor of a free-trade policy.If,as a result,the domestic price of pistachios decreases to equal the world price of pistachios,then

• A)that country becomes an exporter of pistachios.
• B)that country has a comparative advantage in producing pistachios.
• C)at the world price,the quantity of pistachios demanded in that country exceeds the quantity of pistachios supplied in that country.
• D)All of the above are correct.

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Definitions:

Integral Role

A crucial function or part played by a component within a system or process.

Communication Vehicle

A medium or channel through which information, messages, or data are transmitted from a sender to a receiver.

Exert Leverage

The act of using one's advantage or influence to affect or sway outcomes in a desired way.

Particular Negotiation

A negotiation that is specific to a certain context, situation, or set of circumstances.