Suppose in the country of Nash that the price of corn is $4 per bushel with no trade allowed. If the world price of corn is $3 per bushel and if Nash allows free trade, will Nash be an importer or an exporter of corn?

Nash will be an importer of corn.

Economics

You might also like to view...

The demand for loanable funds curve shifts in response to changes in

A) the amount of household savings. B) the expected future disposable income. C) expected profits. D) the real interest rate. E) wealth.

Economics

Foreign portfolio investment in the United States has continually declined since 1995

Indicate whether the statement is true or false

Economics