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Microeconomics
Learn the toughest concepts covered in Microeconomics with step-by-step video tutorials and practice problems by world-class tutors
Table of contents
International Trade
Exporting and Importing
Next Topic
This lesson will be very IMPORTant... ha... ha...
1
concept
Autarky
4m
Play a video:
2
concept
High World Price:Export
9m
Play a video:
3
concept
Low World Price:Import
6m
Play a video:
4
Problem
A nation practicing autarky has a domestic price of extremely tight pants that is lower than the world price. If the nation opened up trade,
A
It would become an extremely tight pants exporter because the nation has a comparative advantage in producing extremely tight pants.
B
It would become an extremely tight pants importer because the nation has a comparative advantage in producing extremely tight pants.
C
t would become an extremely tight pants exporter because the nation does not have a comparative advantage in producing extremely tight pants
D
It would become an extremely tight pants importer because the nation does not have a comparative advantage in producing extremely tight pants.
