It is possible to determine how much a nation will export over and above its domestic consumption at various international prices, other things being equal, by finding a set of equilibria. This schedule is:
A) the import demand curve for a nation.
B) the export supply curve for a nation.
C) the production possibilities frontier for a nation.
D) the "no-trade" equilibrium.

Question

Quizplus · Accepted Answer

The schedule mentioned in the question is the export supply curve for a nation, as it shows the quantity of a good a nation is willing and able to export at different international prices. Option A is incorrect as import demand curve shows the quantity of a good a nation is willing and able to import at different international prices. Option C is incorrect as the production possibilities frontier shows the maximum combination of goods a nation can produce, given its resources and technology. Option D is incorrect as "no-trade" equilibrium refers to a situation where a nation does not engage in international trade due to high autarky (self-sufficiency) levels.

It Is Possible to Determine How Much a Nation Will