500 7501,000:1,300 1,150 Quantity If the world price for the good in this figure is higher than the domestic price, a move to free international trade means that the domestic economy will become: O either a net importer or a net exporter of the good, but it is impossible to say which. O a net importer of the good. O neither a net importer nor a net exporter of the good. O a net exporter of the good.
500 7501,000:1,300 1,150 Quantity If the world price for the good in this figure is higher than the domestic price, a move to free international trade means that the domestic economy will become: O either a net importer or a net exporter of the good, but it is impossible to say which. O a net importer of the good. O neither a net importer nor a net exporter of the good. O a net exporter of the good.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question

Transcribed Image Text:Figure: Trade 1
Price
$200
175
150
Domestic
Supply
500 7501,000:1,300
1,150
World Supply + Tariff
World Supply
Domestic
Demand
Quantity
If the world price for the good in this figure is higher than the domestic price, a move to free international trade means that
the domestic economy will become:
O either a net importer or a net exporter of the good, but it is impossible to say which.
O a net importer of the good.
neither a net importer nor a net exporter of the good.
a net exporter of the good.
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