In analyzing the gains and losses from international trade, to say that Moldova is a small country is to say that
A)Moldova can only import goods; it cannot export goods.
B)Moldova's choice of which goods to export and which goods to import is not based on the principle of comparative advantage.
C)only the domestic price of a good is relevant for Moldova; the world price of a good is irrelevant.
D)Moldova is a price taker.

Question

Quizplus · Accepted Answer

In the context of international trade, saying that Moldova is a small country implies that it has a relatively small economy that cannot influence world prices for goods and services. Therefore, it takes the prices as given by the international market, making it a price taker.

In Analyzing the Gains and Losses from International Trade, to Say