A country will export a good if it
A) can sell the good to a foreigner at a higher price than the no-trade domestic price.
B) can sell the good to a foreigner at a lower price than the no-trade domestic price.
C) can dump the good on the world market.
D) has a high opportunity cost of production.
E) is impossible to import the good.

Question

Quizplus · Accepted Answer

A country will export a good if it can sell the good to a foreigner at a higher price than the no-trade domestic price. This allows the country to earn a profit on the sale of the good and benefit from international trade.

A Country Will Export a Good If It