Question

In: Economics

Fill in the blanks. A country is a net ​[fill in blank one] of the goods...

Fill in the blanks. A country is a net ​[fill in blank one] of the goods for which its relative price under Autarky is lower than under free trade and a net ​[fill in blank two] of the other good.

A

exporter, importer

B

importer, exporter

C

exporter, exporter

D

importer, importer

E

not enough information to know either direction of trade

Solutions

Expert Solution

When the price under autarky is lower than the price under the free trade then the country becomes an exporter of the good and a net importer of the other good.

option(C)


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