Homework (Ch 09) Back to Assignment Attempts 2.5 Do No Harm 25 /3 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 $23. Suppose that the world price of meekles 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 meekles. Given current economic conditions in Meekerton, complete the following table by indicating whether each of the statements is true of false. Statement True False Meekertonian producers were worse off without free trade than they are with it. O O Meekertonian consumers were better off without free trade than they are with it. True or False: When a nation is too small to affect world prices, allowing free trade 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 O False