If a Country Allows Trade And, for a Certain Good

question 33

Multiple Choice

If a country allows trade and, for a certain good, the domestic price without trade is lower 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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Definitions:

Puerto Rico

A Caribbean island and unincorporated territory of the United States with a rich culture, tropical climate, and diverse landscape.

European American

A term used to describe Americans who have origins in any of the original peoples of Europe.

Ethnicity

A social group that shares common and distinctive culture, religion, language, or heritage.

Latino

A term commonly used in the United States to refer to people of Latin American origin or descent, it is often used interchangeably with "Hispanic" though there are distinctions in some contexts.