If a country is an exporter of a good,then it must be the case that
A)the world price is less than its domestic price.
B)consumer surplus is higher than a no trade situation.
C)the world price is greater than its domestic price.
D)they used an infant-industry argument to protect its producers.

Question

Quizplus · Accepted Answer

If a country is an exporter of a good, then it is able to sell the good at a higher price in the international market (world price) than its domestic price. This is because the country has a comparative advantage in producing the good, and can produce it at a lower cost than other countries. As a result, the country benefits from the trade by earning more revenue from exports than it would by selling the good domestically.

If a Country Is an Exporter of a Good,then It