Australia exports a good if its no-trade Australian price is ________ the world price. With international trade, Australian production of the good ________ compared to the level of no-trade production.

Question

Quizplus · Accepted Answer

Australia exports a good if its no-trade Australian price is lower than the world price, as it can sell the good at a higher price internationally. With international trade, Australian production of the good increases to meet the higher demand at the world price.

Australia Exports a Good If Its No-Trade Australian Price Is