It is possible to determine how much a nation will export over and above
Its domestic consumption at various international prices, other things
Being equal, by finding a set of equilibria.This schedule is:
A)the import demand curve for a nation.
B)the export supply curve for a nation.
C)the production possibilities frontier for a nation.
D)the "notrade" equilibrium.

Question

It is possible to determine how much a nation will export over and above
Its domestic consumption at various international prices, other things
Being equal, by finding a set of equilibria.This schedule is:
A)the import demand curve for a nation.
B)the export supply curve for a nation.
C)the production possibilities frontier for a nation.
D)the "no­trade" equilibrium.

Quizplus · Accepted Answer

The schedule described in the question is the export supply curve for a nation. It shows the quantity of a good a nation is willing and able to export at various international prices above its domestic consumption, other things being equal. This curve is different from the import demand curve, which shows the quantity of a good a nation is willing and able to import at various international prices below its domestic production. The production possibilities frontier shows the maximum combinations of two goods that a nation can produce with a given set of resources and technology. The "no-trade" equilibrium is a point where a nation produces and consumes all of its output, with no international trade.

It Is Possible to Determine How Much a Nation Will