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      Question

      Within a country, the domestic price of a product will

      equal the world price if
      A trade restrictions are imposed on the product Correct Answer Incorrect Answer
      B the country chooses to import, but not export, the product Correct Answer Incorrect Answer
      C the country chooses to export, but not import, the product Correct Answer Incorrect Answer
      D the country allows free trade Correct Answer Incorrect Answer

      Solution

      In case of free trade, domestic price equals world price of a product.

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