Relative to a No-International-Trade Initial Situation, If the United States

question 105

Multiple Choice

Relative to a no-international-trade initial situation, if the United States had a comparative advantage in wine production and exported wine, the U.S. domestic price of wine:

• A)​would rise, but domestic output would fall.
• B)​would fall, but domestic output would rise.
• C)​would rise, and domestic output would rise.
• D)​would fall, and domestic output would fall.

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