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If a Country Allows Trade and the Domestic Price of a Good

Question 8

Multiple Choice
If a country allows trade and the domestic price of a good is different from the world price,will the country become an exporter

If a country allows trade and the domestic price of a good is different from the world price,will the country become an exporter


A) yes, if the domestic price is lower, it will export
B) no, if the domestic price is lower, it will import
C) no, it will only export if the domestic price is the same as the world price
D) no, it will only export if the domestic price is higher than the world price

Correct Answer:

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