-If the world price of a good is below the no-trade domestic price, a country
A) will benefit from importing the good.
B) cannot benefit from trade.
C) has a comparative advantage in the production of that good.
D) will benefit from exporting the good.
E) will not engage in trade for that good.

Question

-If the world price of a good is below the no-trade domestic price, a country
A) will benefit from importing the good. 
B) cannot benefit from trade. 
C) has a comparative advantage in the production of that good. 
D) will benefit from exporting the good. 
E) will not engage in trade for that good.

Quizplus · Accepted Answer

The Answer is A

-If the World Price of a Good Is Below the No-Trade