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MMLU / The United States produces rice in a competitive market. With free trade the…

Problem

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question

The United States produces rice in a competitive market. With free trade the world price is lower than the domestic price. What must be true?

choices

  1. The United States begins to import rice to make up for a domestic shortage.
  2. The United States begins to export rice to make up for a domestic shortage.
  3. The United States begins to import rice to eliminate a domestic surplus.
  4. The United States begins to export rice to eliminate a domestic surplus.

subject

high_school_macroeconomics

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