question 17 Consider a small open economy that produces computers and textiles.The world price of computers is greater than the country's autarky price of computers and the world price of textiles is less than the county's autarky price of textiles. With free trade a. There is excess supply of computers in the domestic economy, so computers are exported b. There is excess supply of textiles in the domestic economy, so textiles are imported c. There is excess demand for computers in the domestic economy, so computers are imported d. None of the other options

Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter9: Application: International Trade
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question 17

Consider a small open economy that produces computers and textiles.The world price of computers is greater than the country's autarky price of computers and the world price of textiles is less than the county's autarky price of textiles. With free trade

a. There is excess supply of computers in the domestic economy, so computers are exported

b. There is excess supply of textiles in the domestic economy, so textiles are imported

c. There is excess demand for computers in the domestic economy, so computers are imported

d. None of the other options

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