The nation of Aviana soon will abandon its no-trade policy and adopt a free-trade policy. If the world price of goose meat is $3 per pound and the domestic price of goose meat without trade is $2 per pound, then Aviana should export goose meat.

Question

Quizplus · Accepted Answer

If the world price of goose meat is higher than the domestic price, then Aviana should export goose meat to take advantage of the higher price.

The Nation of Aviana Soon Will Abandon Its No-Trade Policy