(Solved): Consider the imaginary economy of Meekerton and the market for meekies, a hypothetical good. Without ...

Consider the imaginary economy of Meekerton and the market for meekies, a hypothetical good. Without international trade the domestic price of meekies is $\$32$. Suppose that the world price of meekies is $\$24$. Assume that if it were to enter the international market for meekies, Meekerton is too small to influence the world price. If Meekerton decides to participate in free trade, then it will meekies. Given current economic conditions in Meekerton, 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, allowing free trade will never increase total surplus in that country, regardiess of whether it imports or exports as a result of intemational trade. True False 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 $\$32$. Suppose that the world price of meekies is $\$24$. Assume that if it were to enter the international market for meekies, Meekerton is too smail to influence the worid price. If Meekerton decides to participate in free trade, then it wil meckies. Given current economic conditions in Meckertan, camplete 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 warld prices, allewing free trade will never increase total surplus in that country, regardless of whether it imports or exports as a result of international trade. True False