Suppose that Canadian farmers can grow wheat more cheaply than can U.S. farmers. In the interest of efficiency, what is the desirable outcome?

Question

Quizplus · Accepted Answer

Allowing Canadian farmers to sell their wheat for a lower price is the desirable outcome in the interest of efficiency. This would lead to lower prices for consumers and encourage competition in the market, ultimately increasing overall economic efficiency. Mandating a minimum price for wheat in Canada or a maximum price for wheat in the United States would distort the market and prevent efficient outcomes. Boycotting Canadian wheat would harm both economies and also prevent efficient outcomes.

Suppose That Canadian Farmers Can Grow Wheat More Cheaply Than