Principles of Macroeconomics 7th Edition

Published by South-Western College
ISBN 10: 1-28516-591-8
ISBN 13: 978-1-28516-591-2

Chapter 9 - Application: International Trade - Quick Check Multiple Choice - Page 190: 5

Answer

c. starting to allow trade when the world price is greater than the domestic price

Work Step by Step

This will cause domestic producers to export goods and will raise the domestic price. This benefits domestic producers and hurts domestic consumers.
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