-According to the above table,the country will import the good if the world price is less than ________ and will export the good if the world price is more than ________.
A) $4; $4
B) $6; $6
C) $8; $4
D) $10; $10
E) $4; $8

Question

-According to the above table,the country will import the good if the world price is less than ________ and will export the good if the world price is more than ________.
A) $4; $4 
B) $6; $6 
C) $8; $4 
D) $10; $10 
E) $4; $8

Quizplus · Accepted Answer

The country will import the good if the world price is less than the domestic price at which it can produce the good itself, indicating it's cheaper to buy from the world market. Conversely, it will export the good if the world price is more than its domestic production cost, as it can sell the good for a higher price on the world market. The correct domestic price point for both importing and exporting in this scenario is $6, as it represents the threshold at which the country shifts between finding it more economical to either import or export the good.

-According to the Above Table,the Country Will Import the Good