winners and losers from free trade

2. Winners and losers from free trade Consider the imaginary economy of Meekerton and the market for meekies, a hypothetical good. Without international trade the domestic price of meekies is \$21. Suppose that the world price of meekles is $22. Assume that if it were to enter the international mariket for meekies, Meekerton is too small to influence the world price. If Meckerton decides to participate in free trade, then it will meekles. Given curnent economic conditions in Meckerton, complete the following table by indicating whether each of the statements is true or false. True or False: When a nation is too small to affect world prices, aliowing free trode will have a non-negative effect on total surplus in that country, regardless of whether it imports or exports as a result of international trade. True fatse 2. Winners and losers from free trade Consider the imaginary economy of Meekerton and the market for meekes, a hypothetical gosd. Without international trade the domestic price of meekies is \$21. Suppose that the world price of meckles is \$22. Assume that if it were to enter the international market for meekies, Noekerton is too stiall to infiuence the world price. If Meckerton decides to participate in free trade, then it wili meekies: Given current economic condibions in Mecherten, comelete : g table by indicating whether esch of the stacemente is the or fatie. regardiess of whether it imports or exports as a result of intertationsi trode. True: Fative