Business, 02.04.2021 19:30 reterrickeyfox205
Consider the market for meekers in the imaginary economy of Meekertown. In the absence of international trade, the domestic price of meekers is $33. Suppose that the world price of meekers is $25. Assume that Meekertown is too small to influence the world price of meekers once it enters the international market.
If Meekertown allows free trade, it will be meeker.
a. Export
b. Import
Meekertownian consumers are worse off under free trade than they were before.
a. True
b. False
Meekertownian producers are better off under free trade than they were before.
a. True
b. False
True or False: When a country is too small to affect the world price, allowing for free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade.
a. True
b. False
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