A small nation is one which must have all of the following characteristics except:
A) It does not affect world price by its trading.
B) It faces an infinitely elastic world supply curve for its import commodity.
C) It faces an infinitely elastic world demand curve for its export commodity.
D) It has a small geographic area.

Question

Quizplus · Accepted Answer

The other three characteristics are necessary for a nation to be considered small in the context of international trade, but having a small geographic area is not necessarily a requirement. A nation can still be considered small even if it has a large land mass but a small economy in terms of trade.

A Small Nation Is One Which Must Have All of the Following